logo

Crowdly

Carleton Capital has 338 million shares outstanding and announced earnings of...

✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.

Carleton

Capital has

338 million shares outstanding and announced earnings of $169 million today. Its earnings have grown at an annual rate of 6,6%

over the past

25 years, a trend that management and market analysts expect to continue

indefinitely. The firm distributes

22%

of its earnings as dividends and

allocates an additional

32%

to share repurchases. Assuming Carleton maintains

this payout strategy and its equity cost of capital remains at

9,9

%, what is

the value of its stock according to the total payout model? Write your answer to two decimal places.

More questions like this

Want instant access to all verified answers on elearning.mbs-education.com?

Get Unlimited Answers To Exam Questions - Install Crowdly Extension Now!