Answers
Dividend Payout rate
0.75
Stock price
280
Earning per share
30
XX
Dividend payout
XX.5
(30*X.XX)
Dividend XXXXX
0.XXXXXX
(22.X/280)
Dividend XXXXX in XXXXXXX
8%
XXXXXX XX Equity (ROE)=XX/280
X.107143
g
XXXXXX XXXX=ROE*(1-XXXXXX XXXX)
X.026786
X.107143*(1-0.75)
XXXXXX XXXX in XXXXXXX
2.X%
CALCULATION XX XXXXXXXX XXXX OF XXXXXX
D1
Next years dividend=XX*(X+g)
23.10
P0
Current XXXXX
XXX
XXXXXXXX XXXX XX Return=X
XX=D1/(X-g)
R=(D1/P0)+g
X
Required Rate of Return=(XX.10/280)+0.026786=
0.109295
Required XXXX XX XXXXXX XXXXXXX
10.93%
CALCULATION XX P/E RATIO
XXXXX per Share
XXXXXXX per share
X/E XXXXX=XXX/30
9.XXXXXX