This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Yesterday, Initech paid out $0.86B in dividends and repurchased $4.475B worth of shares. Initech has ... (Read 99 times)

Lisaclaire

  • Hero Member
  • *****
  • Posts: 569
on: Apr 25, 2021
Yesterday, Initech paid out $0.86B in dividends and repurchased $4.475B worth of shares. Initech has 1.22B shares outstanding and pays all of its dividends and makes its repurchases at the end of each year. Because of the slow-down in the economy, analysts expect that next year Initech will hold dividend payments constant at yesterday's level and cancel its stock repurchase program. Two years from now, analysts forecast that total payouts will return to the level of yesterday. After that date analysts expect that total payouts will grow at an annual rate of 2.5% in perpetuity. Assume that investors require a 9.5% rate of return on Initech shares. What is the Total Payout model estimate of the stock price today?
◦ $57.69
◦ $63.18
◦ $69.60
◦ $70.39
◦ $77.07
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Lisaclaire on Apr 25, 2021

britb2u

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly


Lisaclaire

  • Member
  • Posts: 569
Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

LegendaryAnswers

  • Member
  • Posts: 341
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Australopithecus sediba shares small brain size with other members of Australopithecus but also has Australopithecus sediba shares small brain size with other members of Australopithecus but also has
The recently discovered lleret calvaria from Kenya is the smallest H. erectus and shares many traits The recently discovered lleret calvaria from Kenya is the smallest H. erectus and shares many traits
“Career choice” for many women means leaving their paid jobs for a number of years when they ... “Career choice” for many women means leaving their paid jobs for a number of years when they ...
After 159 days,she paid a maturity value of $11,626, which included interest of $814. After 159 days,she paid a maturity value of $11,626, which included interest of $814.
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ... A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...
Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ... Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ...
Video: Prone Position

For a complete list of videos, visit our video library