Business, 11.06.2021 22:40 ldpozorski

Microsoft Corporation reported earnings of $7.34 per share in the most recent 12-month period and has just paid annual dividends per share of $2.24. Earnings are expected to grow at 12% a year for three years, during which period the dividend payout ratio is expected to remain unchanged from its current level. After that period, the earnings growth rate is expected to drop to 6% and the payout ratio is expected to increase to 60% of earnings. The firm has a beta of 0.8 currently, and it is expected to have a beta of 0.7 after it increases its payout ratio. If the term structure of riskfree interest rates is flat at 2.6% and the market risk premium is 8%, what should the price per share of Microsoft be

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 20:20

Jing-sheng facilitated a hiring committee for his advertising company. six employees (including two managers) met together to discuss applicants and select the finalists for a copywriter position in the public relations department. although the head of public relations would have the final nod on the candidate that would ultimately be hired, the evaluative work of the committee was very important because this group would send forward those persons they believed would be good work colleagues. in setting up this type of hiring process, the head of public relations was utilizing a(n) style of leadership.a. autocraticb. free-reinc. contingentd. participative

Answers: 3

Answer

Business, 22.06.2019 06:30

If a seller prepaid the taxes of $4,400 and the closing is set for may 19, using the 12 month/30 day method what will the buyer owe the seller as prorated taxes?

Answers: 1

Answer

Business, 22.06.2019 11:20

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?

Answers: 3

Answer

Business, 22.06.2019 20:40

Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.

Answers: 2

Answer

You know the right answer?

Microsoft Corporation reported earnings of $7.34 per share in the most recent 12-month period and ha...

Questions