Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. aaron inc. has 308 million shares outstanding. it

Aaron Inc. has 308 million shares outstanding. It expects earnings at the end of the...

60.1K

Verified Solution

Question

Finance

image
Aaron Inc. has 308 million shares outstanding. It expects earnings at the end of the year to be $573 million. The firm's equity cost of capital is 10%. Aaron pays out 50% of its earnings in total: 30% paid out as dividends and 20% used to repurchase shares. If Aaron's earnings are expected to grow at a constant 6% per year, what is Aaron's share price? A. $34.88 B. $1163 C. $23.25 D. $46.50

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In a 1.0× 10–2 M solution of CH3NH3Br(aq), identify the relative molar amounts of these species....

Chemistry
Q

1-conctruct trans-1,2-dimethylcyclohexane.by means of ring flips, examine the model with the two-CH3 groups axial and the...

Chemistry
Q

24 3 Priya followed this set of instructions to make quadrilateral ACBD Choose a description...

Geometry
Q

4 While a gold mine produced 2 210 kg in the first year production is...

Basic Math
Q

A camper wants to protect her bag of food from bears. She decides to tightly...

Basic Math
Q

work Find the regression equation letting the first variable be the predictor x variable Using...

Statistics
Q

Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in...

Accounting
Q

According to IAS 37, the appropriate accounting treatment for future operating losses is to: Select...

Accounting
Q

The 2009 RBC Canadian Open golf tournament was played at the Glen Abbey Golf Club...

Accounting
Q

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed...

Accounting
Q

Five banks offer nominal rates of 8% on deposits, but A pays interest annually, B...

Finance
Q

You purchased Butterfly Wing Corp. stock exactly one year ago at a price of $76.79...

Finance