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    Tuga Ketiga PMMK

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    ERika Pratiwi
    This document contains solutions to practice problems related to capital markets and corporate finance. It includes calculations to determine: 1) The required rate of return for a stock based on the company's earnings, dividends, and expected return on equity. 2) Future dividends over a 7 year period, given past dividend growth rates. 3) Price-earnings ratios for two companies with and without new projects increasing earnings. 4) The current and future stock prices for a company considering a new investment project that would increase future earnings.

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    Tuga Ketiga PMMK

    Uploaded by

    ERika Pratiwi
    231 views3 pages
    This document contains solutions to practice problems related to capital markets and corporate finance. It includes calculations to determine: 1) The required rate of return for a stock based on the company's earnings, dividends, and expected return on equity. 2) Future dividends over a 7 year period, given past dividend growth rates. 3) Price-earnings ratios for two companies with and without new projects increasing earnings. 4) The current and future stock prices for a company considering a new investment project that would increase future earnings.

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    Tuga Ketiga Pmmk

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    This document contains solutions to practice problems related to capital markets and corporate finance. It includes calculations to determine: 1) The required rate of return for a stock based on the company's earnings, dividends, and expected return on equity. 2) Future dividends over a 7 year period, given past dividend growth rates. 3) Price-earnings ratios for two companies with and without new projects increasing earnings. 4) The current and future stock prices for a company considering a new investment project that would increase future earnings.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    231 views3 pages

    Tuga Ketiga PMMK

    Uploaded by

    ERika Pratiwi
    This document contains solutions to practice problems related to capital markets and corporate finance. It includes calculations to determine: 1) The required rate of return for a stock based on the company's earnings, dividends, and expected return on equity. 2) Future dividends over a 7 year period, given past dividend growth rates. 3) Price-earnings ratios for two companies with and without new projects increasing earnings. 4) The current and future stock prices for a company considering a new investment project that would increase future earnings.

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    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    TUGAS PASAR MODAL DAN MANAJEMEN KEUANGAN

    Chapter 9 Halaman 295 No. 23-26 ERIKA PRATIWI (1206328976) Kelas : 21 C

    FAKULTAS EKONOMI PROGRAM MAGISTER AKUNTANSI DAN PENDIDIKAN PROFESI AKUNTANSI UNIVERSITAS INDONESIA JAKARTA SEPTEMBER 2013

    23. Finding the Required Return. Juggernaut Satellite Corporation earned $10 million for the fiscal year ending yesterday, the firm also paid out 20% of its earning as dividends yesterday. The firm will continue to pay 20% of its earning as annual, end-of-year dividends. The remaining 80% of earning is retained by the company for use in projects. The company has 2 million shares of common stock outstanding. The current stock price is $85. The historical return on equity of 16% is expected to continue in the future. What is the required rate of return on the stock? g = ROEx b = 0.16 x 0.18 = 0.128 = 12.8% dividend per share =

    =
    R= =

    = $1 = 0.1412 = 14.13%

    24. Dividend growth. Four year ago, Bling Diamond, Inc., paid a dividend of $1.20 per share. Bling paid dividend of $1.93 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 7% per year. What will Bling Diamond;s cash dividend be in 7 year? FV = PV (1+r)t $1.93 = $1.2 (1+r)4 r= )1/4 -1

    = 0.1261 = 12.61% D7 = D0 (1+g1)5 (1+g2)2 = $1.93 (1+0.1261)5 (1+0.07)2 = $4

    25. Price-Earnings Ratio. Consider Pasific Energy Company and U.S Bluechips, Inc., both of which reported earnings of $750,000. Without new projects, both firm will continue to generate earnings of $750,000 in perpetuity. Assume that all earnings are paid as dividends and that bith firm require a 14% rate of return. a. What is the current PE ratio for each company? P= = PE = = = $ 5,357,142.86 = 7.14 kali
    1

    b. Pasific Energy Company has a new project that will generate additional earnings of $100,000 each year in perpetuity. Calculate the new PE ratio of the company. P= = PE = = = $ 6,071,428.57 = 8.10 kali

    c. U.S Bluechips has a new project that will increase earnings by $200,000 in perpetuity. Calculate the new PE ratio of the firm P= = PE = = = $ 6,785,714.29 = 9.05 kali

    26. Growth Opportunities. The Stambaugh Corporation currently has earnings per share of $8.25. The company has no growth and pays out all earnings as dividends. It has a new project which will require an investment of $1.60 per share in one year. The projects in only a two-year project and it will increase earnings in the two years following the investment by $2.10 and $2.45, respectively. Investors require a 12% return on Stambaugh stock. a. What is the value per share of the companys stock assuming the firm does not undertake the investment opportunity? P= = = $ 68.75

    b. If the company does undertake the investment, what is the value per share now? NPVGO = C1/ (1+r) + C2/(1+r)2 + C3/ (1+r)3 = -$1.6/ (1+12%) + $2.1/(1+12%)2 + $2.45/ (1+12%)3 = $1.99 P = $ 68.75 + 1.99 = $ 70.74

    c. Again, assume the company undertakes the investment. What will the price per share be four years from today? Setelah proyek berakhir, dan meningkatkan pendapatan, harga saham akan kembali ke $ 68,75.

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