Calculate the growth rate

Assignment Help Financial Management

Reference no: EM131068388

The market capitalization rate for Admiral Motors Company is 9%. Its expected ROE is 15% and its expected EPS is $7. If the firm’s plowback ratio is 40%.

a. Calculate the growth rate. (Input your answer as a nearest whole percent.)

Growth rate %

b. what will be its P/E ratio? (Do not round intermediate calculations.)

P/E ratio

Reference no: EM131068388

Questions Cloud

An equally weighted index-rate of return : Calculate the first-period rates of return on the following indexes of the three stocks: An equally weighted index.

Calculate the market capitalization rate : Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 4% per year. The risk-free rate is 6%, and the expected return on the market portfolio is 14%. The stock has a beta of 0.88...

Spot interest rates for maturities : Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 6.5% r2 = 7.0% r3 = 7.7% r4 = 8.5% What are the following forward rates, where f1, k refers to a forward rate for the period beginning in one year and ..

Calculate the rate of return on a price-weighted index : Calculate the rate of return on a price-weighted index of the three stocks for the first period. What will be the divisor for the price-weighted index in year 2?

Calculate the growth rate : The market capitalization rate for Admiral Motors Company is 9%. Its expected ROE is 15% and its expected EPS is $7. If the firm’s plowback ratio is 40%. Calculate the growth rate. what will be its P/E ratio?

What is the least you could pay to acquire a bill : A Treasury bill has a bid yield of 2.91% and an ask yield of 2.89%. The bill matures in 126 days. Assume a face value of $1,000. What is the least you could pay to acquire a bill?

Capital budgeting and dividend policy : We examined two very important topics in finance this week; Capital Budgeting and Dividend Policy. Critically reflect on the importance of selecting the right projects in which to invest capital. Do we always select those projects that have the highe..

Describe your chosen company dividend policy : Using the annual report of CVS stores and other sources such as a 10k or 10q’s, discuss the dividend policy of your company. How would you describe your chosen company’s dividend policy? Why do you believe this company chose the dividend policy they ..

The decision-making process to upper management : Imagine you are a representative of management in the company you have selected for your Week Six assignment (my paper is on CVS pharmacy/retail store) and you must make a capital budgeting decision. You are charged with describing the important cons..

User Account

All Pages