Chittenden Enterprises Has 643 Million Shares Outstanding

question 59

Multiple Choice

Chittenden Enterprises has 643 million shares outstanding. It expects earnings at the end of the year to be $960 million. The firm's equity cost of capital is 9%. Chittenden pays out 30% of its earnings in total: 20% paid out as dividends and 10% used to repurchase shares. If Chittenden's earnings are expected to grow at a constant 3% per year, what is Chittenden's share price?

• A) $3.74
• B) $2.24
• C) $7.47
• D) $14.94

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Definitions:

Dramatic Opportunities

Situations or scenarios that provide significant potential for impactful actions or changes.

Culture Change

Culture change refers to the transformation in the shared values, norms, attitudes, and practices among members of an organization or society.

Failed Change Programs

Initiatives aimed at organizational or behavioral change that do not achieve their intended outcomes, often due to resistance, inadequate planning, or lack of resources.

Implementation

The process of putting a decision or plan into effect, often involving the practical aspects of executing strategies or policies.