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| Teaching Since: | May 2017 |
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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
Barnes Corporation is expected to continue paying out
100% of its earnings as a dividend. EBIT is expected to be $1,000,000 per year indefinitely. There is
no debt in Barnes capital structure, it has 100,000 shares of common stock outstanding, and the
corporate tax rate is 40%. The next dividend is one year from now. The required rate of return on
equity is 10%. Calculate the dividend per share each year, the current market price for Barnes'
stock, and the market price of the stock one year from now.
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