FPA Workshop 1 Assessment Policy Dividend

Task 1.
Company "Alpha" has a network of supermarkets and food is experiencing a period of rapid development, unlike competitors high revenue at 1 store. It is expected that dividends will grow at 33% per year over the next 3 years, 24% in the fourth year and then kept at 8%. The required rate of return on equity for the company's shares 16%, the stock is trading at 45 rub. / Share. What are the expected dividends over the next 6 years?

Task 2.
Company "Alpha" is the largest manufacturer of women's business clothing. According to the financial projections for the next 6 years, the net profit of the company is:
Year 2010 2011 2012 2013 2014 2015
Net profit, mln. Rub. 378 456 420 389 496 510

Currently in circulation is 30 million common shares that can be bought on the market at 25 rub. / Share. Calculate a dividend per share shareholders will receive in the period from 2010 to 2015 in the following cases:
1. The company pays in dividends of 27% of net profit;
2. in 2010, the company decided to pay a dividend in the amount of a stable - 4 rub. / Share, and if profits exceed 490 million, the excess amount will be paid as dividends as a bonus;
3. To set a dividend of 36% of net profit in 2012 the company will split at a ratio of 2: 1;
4. for the period from 2010 to 2015 the company has developed investment plan, which will be:
Year 2010 2011 2012 2013 2014 2015
Net profit, mln. Rub. 250 230 220 210 200 190

In this embodiment, it is assumed that the dividends paid on the residual principle. When financing projects, the company strives to maintain an optimal capital structure, in which the leverage ratio is 40%, and their own - 60%. The entire net profit, which was not aimed at the investment will be used to pay dividends.