Business, 05.08.2019 16:10 sebasm4842

Wyatt oil, an all-equity financed firm, has just reported eps of $4.00 per share. despite an economic downturn, wyatt is confident regarding its current investment opportunities, but due to the current financial crisis, wyatt does not wish to fund these investments externally. wyatt's board has therefore decided to suspend its stock repurchase plan and cut its dividend to $1 per share (from its current level of $2 per share) and retain these funds instead. the firm just paid its current dividend of $1.00 per share and expects to keep its dividend at $1 per share next year as well. in subsequent years, it expects its growth opportunities to slow, and it will still be able to fund its growth internally with a target 40% dividend payout ratio, and reinitiating its stock repurchase plan for a total payout rate of 60%. all dividends and repurchases occur at the end of each year. wyatt's existing operations are expected to generate the current level of earnings per share in the future. assume that the return on new investments is 16% and that reinvestments will account for all future earnings growth. wyatt's current equity cost of capital is 12%. wyatt's expected eps in two years is closest to: $5.04 $4.64 $4.48 $5.38

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 01:30

Diversity is an obstacle all marketers face: true false

Answers: 2

Answer

Business, 22.06.2019 05:10

1. descriptive statistics quickly describe large amounts of data can predict future stock returns with surprising accuracy statisticians understand non-numeric information, like colors refer mainly to patterns that can be found in data 2. a 15% return on a stock means that 15% of the original purchase price of the stock returns to the seller at the end of the year 15% of the people who purchased the stock will see a return the stock is worth 15% more at the end of the year than at the beginning the stock has lost 15% of its value since it was originally sold 3. a stock purchased on january 1 cost $4.35 per share. the same stock, sold on december 31 of the same year, brought in $4.75 per share. what was the approximate return on this stock? 0.09% 109% 1.09% 9% 4. a stock sells for $6.99 on december 31, providing the seller with a 6% annual return. what was the price of the stock at the beginning of the year? $6.59 $1.16 $7.42 $5.84

Answers: 3

Answer

Business, 22.06.2019 15:20

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.

Answers: 3

Answer

Business, 22.06.2019 16:50

Slow ride corp. is evaluating a project with the following cash flows: year cash flow 0 –$12,000 1 5,800 2 6,500 3 6,200 4 5,100 5 –4,300 the company uses a 11 percent discount rate and an 8 percent reinvestment rate on all of its projects. calculate the mirr of the project using all three methods using these interest rates.

Answers: 2

Answer

You know the right answer?

Wyatt oil, an all-equity financed firm, has just reported eps of $4.00 per share. despite an economi...

Questions