Business, 19.08.2021 22:40 milkshakegrande101

Brian is getting nervous about his stock holding in KalraCo. He bought the stock three years ago at $20 per share and the price is now $65 per share. KalraCo. has a policy of paying out 60 percent of its earnings in dividends and Brian expects the company to continue earning about 12 percent return on equity. Over the past 12 months, KalraCo. paid $2.50 in dividends. Assume a discount rate of 15%. a) Based on Brians’s projections, is the stock overpriced at $45 per share?
b) Should the firm increase or decrease their payout ratio? Explain your answer.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 20:30

What could cause a production possibilities curve to move down and to the left? a.) a nation loses land after being defeated in a war. b.) an increase in the use of computer technology speeds up production c.) a baby boom 20 years ago results in a large number of young adults in the population today. d.) thousands of investors from overseas invest money in a nations economy.

Answers: 1

Answer

Business, 22.06.2019 22:00

Indicate whether each of the following companies is primarily a service, merchandise, or manufacturing business. if you are unfamiliar with the company, use the internet to locate the company's home page or use the finance web site of yahoo. 1. alcoa inc. 2. boeing 3. caterpillar 4. citigroup inc. 5. cvs 6. dow chemical company 7. ebay inc. 8. fedex 9. ford motor company 10. gap inc. 11. h& r block 12. hilton hospitality, inc. 13. procter & gamble 14. suntrust 15. walmart stores, inc.

Answers: 3

Answer

Business, 23.06.2019 00:00

Both renewable and nonrenewable resources are used within our society. how do the uses of nonrenewable resources compare to the uses of renewable resources?

Answers: 1

Answer

Business, 23.06.2019 07:00

An employer takes a deduction from your paycheck for federal taxes. where does this money go? -the money is sent to the federal government to pay for goods and services for the community. -the money is sent to the mayor. -the money is sent to the federal government and deposited in a retirement account. -the money is sent to the social security fund.

Answers: 3

Answer

You know the right answer?

Brian is getting nervous about his stock holding in KalraCo. He bought the stock three years ago at...

Questions