Sultan Services Has 1

question 43

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

---

Definitions:

Bandages

Strips of cloth or other material used to wrap or cover wounds, providing protection and support.

Receiving Report

A document that records the details of materials or goods received by a company, ensuring the quantities and descriptions match the order.

Materials Ordered

The process of requesting and purchasing raw materials or supplies required for production or operations.

Materials Requisitions

Documents that request the release of materials to be used in the production process or for other operational needs.