Business

FinanceQ&A Libraryhe newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report also stated that the firm’s return on equity is 18 percent. The firm retains 75 percent of its earnings. What is the firm's earnings growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Earnings growth rate % What will next year's earnings be? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Next year’s earnings $ Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 28 percent per year during the next three years, 18 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 10 percent, and the stock currently sells for $98 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Projected dividend $ Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9.15, but management expects to reduce the payout by 5 percent per year indefinitely. If you require a return of 15 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Current share price $ Four years ago, Bling Diamond, Inc., paid a dividend of $2.15 per share. The firm paid a dividend of $2.57 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 4 percent per year. What will the firm’s cash dividend be in seven years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cash dividend $Start your trial now! First week only $4.99!*arrow_forward*

Question

What is the firm's earnings growth rate? **(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)**

Earnings growth rate %

What will next year's earnings be?** (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)**

Next year’s earnings $

**(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)**

Projected dividend $

**(Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)**

Current share price $

What will the firm’s cash dividend be in seven years? **(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)**

Cash dividend $

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