Determine the following if the firm p-e ratio

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Ascent Corporation has a net income of $320,000 on sales of $3,000,000. The firm has total assets of $2,000,000 and the book value of equity is $1,600,000. It has just paid a dividend of $1.10 per share to maintain a payout ratio of 55 percent. The 90-day government T-bill yield is 5.25 percent. Determine the following if the firm's P/E ratio is 10:

  1. The number of shares outstanding: 
  2. Sustainable growth rate:  %
  3. Leading earnings per share: EPS1: $  
  4. Estimated price of the stock today: $  
  5. Required rate of return:  %
  6. Risk premium of the stock:  %

Reference no: EM132233635

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