Sultan Services Has 1

question 44

Multiple Choice

Sultan Services has 1.2 million shares outstanding. It expects earnings at the end of the year of $5.6 million. Sultan pays out 60% of its earnings in total-40% paid out as dividends and 20% used to repurchase shares. If Sultan's earnings are expected to grow by 7% per year, these payout rates do not change, and Sultan's equity cost of capital is 9%, what is Sultan's share price?

• A) $56.00
• B) $140.00
• C) $22.40
• D) $93.33

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Definitions:

Early 1700s

The period in the 18th century, often referred to as the early part of the century, spanning from 1700 to around 1750, marked by significant historical, cultural, and scientific developments.

Early 1800s

Refers to the period from the start of the 19th century to approximately 1830, characterized by various significant historical, technological, and cultural developments.

Lobbying

Organization-to-government communications involving direct contact with politicians and government rule makers to provide a point of view.

Political Snapshot

A brief overview or analysis of the current state and dynamics of political events, trends, and figures.