Company historical average pe as benchmark

Assignment Help Financial Management
Reference no: EM131497087

You have found the following historical information for the Daniela Company over the past four years:

Year 1 Stock price $ 51.90

Year 2 Stock price $ 61.32

Year 3 Stock price $ 70.54

Year 4 Stock price $ 64.25

EPS

Year 1: 2.72

Year 2: 2.84

Year 3: 3.12

Year 4: 3.33

Earnings are expected to grow at 17 percent for the next year. Using the company’s historical average PE as a benchmark, what is the target stock price one year from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131497087

Questions Cloud

What is the annualized rate of return of your investment : Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 5.7%. what is the annualized rate of return of your investment?
Experiencing rapid growth-what is stock price : Navel County Choppers Inc. is experiencing rapid growth. If the dividend per share just paid was $1.69, what is the stock price?
Should elrond buy and install machine press : Project Analysis. Elrond’s Machine Shop is considering a four-year project to improve its production efficiency. should Elrond buy and install machine press?
What is the current dollar value of this contribution : What is the current dollar value of this contribution if the discount rate is 7%?
Company historical average pe as benchmark : Using the company’s historical average PE as a benchmark, what is the target stock price one year from today
Sensitivity analysis-variable cost figure : We are evaluating project that costs $1,390,000, has six-year life and has no salvage value. What is sensitivity of OCF to changes in variable cost figure?
What is the holding period yield on the two year bond : What is the holding period yield on the two year bond assuming it has a face value of $100?
Managing intellectual capital : Here are three issues that come up in managing intellectual capital. In what specific ways could corporate culture drive a firm's market value?
What amount of time will be required to pay off the mortgage : What amount of time will be required to pay off the mortgage if you continue to make the original monthly payments?

Reviews

Write a Review

Financial Management Questions & Answers

  Stated yield to maturity-realized compound yield to maturity

The stated yield to maturity and realized compound yield to maturity of a (default –free) zero coupon bond will always be equal. Why?

  As a bond approaches its maturity date

As a bond approaches its maturity date, its price approaches

  PV and Effective Annual Rate

Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm and her boss is selling securities that call for 4 payments of $50 (1payment at the end of each of the next 4 years) plus an extra paymen..

  Realized return is known as the holding period yield

The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY).

  Fund his individual retirement account

James plans to fund his individual retirement account, beginning today, with 20 annual deposits of $2,000, which he will continue for the next 20 years. If he can earn an annual compound rate of 8 percent on his deposits, the amount in the account up..

  Estimate along with best- and worst-case scenarios

Keener Clothiers Inc. is considering investing $2 million in an automatic sewing machine to produce a newly designed line of dresses. The dresses will be priced at $200, and management expects to sell 12,000 per year for six years. Calculate a point ..

  Statement for april for her mastercard account

Kayla Sampson, an antiques dealer from Great Bend, Kansas, received her monthly billing statement for April for her MasterCard account. The statement indicated that she had a beginning balance of $650, on day 5 she charged $150, on day 12 she charged..

  Calculate the expected standard deviation on stock

Calculate the expected standard deviation on stock:

  What will be equity value of firm today using DCF model

Company A’s current free cash flow is $2 dollars and forecasts its FCFF to grow at 0% for 2 years, then 10% for 2 years, then at 5% forever. The firm is consisted of 100% equity and has no debt. If the company’s beta is 1.5, the risk free rate is 2% ..

  What is estimated federal taxes will be

One week later, Axl invites you over again for dinner and drinks.- What his estimated Federal Taxes will be for this coming year.

  What is the cost of common equity

The current T-bill rate is 3%. The market return is 9%. The company has a beta of 2. What is the cost of common equity?

  Invest them in shortterm safe financial instruments

Money market mutual funds take in your dollars (like deposits) and invest them in shortterm “safe” financial instruments to earn you interest. Now assume there is a rule stating that MMMF’s could cash people out at $1 if (for instance) the value of t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd