Use the following information to answer Questions 14 - 17.Hupta Corporation has the following financial numbers.2005$ 6,000$ 2,000$50,000$20,000Net incomeDividendsTotal assets-12/31/05Total liabilities-1231 o5Number of shares outstandingCost of equity1,00010%Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. Alter 2006, residual earnings are expected towearnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05?Oa. 533.60Ob.S33.27OC 532.73Od. $30.00QUESTION 15Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05?Oa. 542.18O b. $40.00OG $48 20O d.$44.00QUESTION 16Following Question 15, what is the price-to-book ratio at 12/31/05?Oa 133Ob.141Oc147

14. revised net income= 6000*110% = $ 6600 residual earnings = net income - bookvalue *cost of…

Use the following information to answer Questions 14-17. Hupta Corporation has the following financial numbers. 2005 $ 6,000 Net income Dividends $ 2,000 Total assets-12/31/05 $50,000 Total liabilities-12/31/05 $20,000 Number of shares outstanding 1,000 Cost of equity 10% Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. After 2006, residual earnings are earnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05? a. $33.60 Ob.$33.27 Oc. $32.73 Od. $30.00 QUESTION 15 Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05? a. $42.18 b. $40.00 Oc$48 20 Od. $44.00 QUESTION 16 Following Question 15, what is the price-to-book ratio at 12/31/05? Oa. 1.33 Ob.141 Q147

Use the following information to answer Questions 14-17. Hupta Corporation has the following financial numbers. 2005 $ 6,000 Net income Dividends $ 2,000 Total assets-12/31/05 $50,000 Total liabilities-12/31/05 $20,000 Number of shares outstanding 1,000 Cost of equity 10% Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. After 2006, residual earnings are earnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05? a. $33.60 Ob.$33.27 Oc. $32.73 Od. $30.00 QUESTION 15 Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05? a. $42.18 b. $40.00 Oc$48 20 Od. $44.00 QUESTION 16 Following Question 15, what is the price-to-book ratio at 12/31/05? Oa. 1.33 Ob.141 Q147

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
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