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Chapter_02_answer_template

Chapter_02_answer_template - Palm Parameters High initial...

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Palm Parameters High initial ROE Palm Long-term ROE Palm rE Palm # shares Palm stock Short-term dividend payout ratio Long-term dividend payout ratio Initial book value Initial cash position Initial cash position per share CAP 6 FVE = ? Period ROE Earnings Dividends FVE Computed as Discounted Dividends 0 ? 1 ? ? ? ? 2 ? ? ? ? 3 ? ? ? ? 4 ? ? ? ? 5 ? ? ? ? 6 ? ? ? ? 7 ? ? ? ? 8 ? ? ? ? 9 ? ? ? ? 10 ? ? ? ? 11 ? ? ? ? 12 ? ? ? ? 13 ? ? ? ? 14 ? ? ? ? 15 ? ? ? ? 16 ? ? ? ? 17 ? ? ? ? 18 ? ? ? ? 19 ? ? ? ? 20 ? ? ? ? 21 ? ? ? ? 22 ? ? ? ? 23 ? ? ? ? Note: When you develop the expected earnings column, use the relationship Earnings = ROE x Book Value of Equity in prior year
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24 ? ? ? ? 25 ? ? ? ? 26 ? ? ? ? 27 ? ? ? ? 28 ? ? ? ? 29 ? ? ? ? 30 ? ? ? ? 31 ? ? ? ? 32 ? ? ? ? 33 ? ? ? ? 34 ? ? ? ? 35 ? ? ? ? 36 ? ? ? ? 37 ? ? ? ? 38 ? ? ? ? 39 ? ? ? ? 40 ? ? ? ?
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Palm FVE 26% Palm FVE per share 16% 16% Market Price 565,946,000 EPS1 P/E market 0% P/E fundamental 50% 1/rE $1,110,640,000 $742,888,000 $1.31 Retained Earnings Book Value =Earnings-Dividends ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
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Palm Parameters High initial ROE Palm Long-term ROE Palm rE Palm # shares Palm stock Short-term dividend payout ratio Long-term dividend payout ratio Initial book value Initial cash position Initial cash position per share CAP 6 FVE = ? Period ROE Earnings Dividends FVE Computed as Discounted Dividends 0 ? 1 ? ? ? ? 2 ? ? ? ? 3 ? ? ? ? 4 ? ? ? ? 5 ? ? ? ? 6 ? ? ? ? 7 ? ? ? ? 8 ? ? ? ? 9 ? ? ? ? 10 ? ?
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