The CPI Corporation is expecte

 

The CPI Corporation is expected to pay a real dividend of $1 per share this year. Its expected growth rate of real dividends is 4% per year, and its current market price per share is $20.

a. Assuming the constant-growth DDM is applicable, what must be the real market capitalization rate for CPI?

b. If the expected rate of inflation is 6% per year, what must be the nominal capitalization rate, the nominal dividend yield, and the growth rate of nominal dividends?

c. If the expected real earnings per share are $1.80, what would be your estimate of intrinsic value if you used a simple capitalized earnings model?

 

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The CPI Corporation is expecte

The CPI Corporation is expected to pay a real dividend of $1 per share this year. Its expected growth rate of real dividends is 4% per year, and its current market price per share is $20.

a. Assuming the constant-growth DDM is applicable, what must be the real market capitalization rate for CPI?

b. If the expected rate of inflation is 6% per year, what must be the nominal capitalization rate, the nominal dividend yield, and the growth rate of nominal dividends?

c. If the expected real earnings per share are $1.80, what would be your estimate of intrinsic value if you used a simple capitalized earnings model?

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized