Business, 21.12.2019 06:31 bri9263

Dfb, inc.,expects earnings this year of $5 per share, and it plans to pay a $3 dividend to shareholders. dfb will retain $2 per share of its earnings to reinvest in new projects that have an expected return of 15% per year. suppose dfb will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change itsnumber of outstanding shares.(a) what growth rate of earnings would you forecast for dfb? (b) if dfb's equity cost of capital is 12%, what price would you estimate for dfb stock? (c) suppose instead that dfb paid a dividend of $4 per share this year and retained only $1per share in earnings. if dfb maintains this higher payout rate in the future, what stock price would you estimate for the firm now? should dfb raise its dividend?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 18:10

In a sumif conditional function, what should be the order of terms in the parentheses?

Answers: 1

Answer

Business, 22.06.2019 01:00

Throne technical university is looking for three people to work in its plant-biology laboratory. the hiring manager is finding that the most suitable job candidates live in other countries and are not willing to move to the city where the university is located. which situation is the university facing? a. lack of flexible workforce b. surpluses in labor talent c. an appearance of quota systems d. deficits in minimum wage demands

Answers: 1

Answer

Business, 22.06.2019 19:20

Sanibel autos inc. merged with its competitor vroom autos inc. this allowed sanibel autos to use its technological competencies along with vroom autos' marketing capabilities to capture a larger market share than what the two entities individually held. what type of integration does this scenario best illustrate? a. vertical b. technological c. horizontal d. perfect

Answers: 2

Answer

Business, 22.06.2019 22:40

Johnson company uses the allowance method to account for uncollectible accounts receivable. bad debt expense is established as a percentage of credit sales. for 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. the allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018.required: 1. what is bad debt expense for 2018 as a percent of net credit sales? 2. assume johnson makes no other adjustment of bad debt expense during 2018. determine the amount of accounts receivable written off during 2018.3. if the company uses the direct write-off method, what would bad debt expense be for 2018?

Answers: 1

Answer

You know the right answer?

Dfb, inc.,expects earnings this year of $5 per share, and it plans to pay a $3 dividend to sharehold...

Questions