Operating earnings per share are estimated

Assignment Help Financial Management
Reference no: EM131350622

The S&P 500 operating earnings per share are estimated to be ~ $107 for 2015. You expect earnings to increase 20% next year. What price range would you expect for the S&P 500 index at the end of next year, and what point estimate would you have for it? Why?

Reference no: EM131350622

Questions Cloud

Define the problem in the scenario that you have chosen : Write a four to five (4-5) page paper in which you: Define the problem in the scenario that you have chosen. Analyze the problem in the scenario. Generate options for solving the problem in the scenario
Present value of the right to receive four equal payments : What is the present value of the right to receive four equal payments (annuity due) of $1,000 per period, discounted at a rate of 10 percent per period? Which of the following statements about stock trading is correct?
How much would you need to invest today to reach future goal : You want to invest money for 3 years in an account that pays 7 percent interest annually. How much would you need to invest today to reach a future goal of $5,000? What is the present value of $2,200, discounted at 10 percent interest per period, for..
What purpose do the soliloquies that hamlet delivers : What purpose do the soliloquies that Hamlet delivers over the course of the play serve? What do readers and audience members learn about Hamlet from what he says in these speeches
Operating earnings per share are estimated : The S&P 500 operating earnings per share are estimated to be ~ $107 for 2015. You expect earnings to increase 20% next year. What price range would you expect for the S&P 500 index at the end of next year, and what point estimate would you have for i..
What is amount of money raised from bondholders : A company's assets will have a value, one year from now, equal to $45 millions if economic conditions are good or to $8 millions if the conditions are bad, the two scenarios are equally likely. The company currently has no debt and, after one year, i..
What was the investor rate of return : An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $.50-per-share dividend in 1 year, and then the stock is sold..
What is the project operating cash flow for the first year : Operating Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $25 million Operating costs (not including depreciation) 7 millio..
Reinvested at effective annual rate : Bob invests 2000 at an effective annual interest rate of 15% for 10 years, Interest is payable annually and is reinvested at effective annual rate j. At the end of 10 accumulated interest is W. Mary invests 500 at the end of each year for 20 years at..

Reviews

Write a Review

Financial Management Questions & Answers

  Most obvious economic reason for the persistent depreciation

Mexico tends to have much higher inflation than the United States, as well as much higher interest rates. Inflation and interest rates are much more volatile in Mexico than in industrialized countries. Identify the most obvious economic reason for th..

  What is the economic order quantity

Rock Bottom Carpets sells 5,600 carpets a year at an average price per carpet of $1,490. The carrying cost per unit is $22.37. The company orders 500 carpets at a time and has a fixed order cost of $69 per order. The carpets are sold out before they ..

  Substituting debt in the capital structure for common stock

Golden Inc. is considering shifting its capital structure by substituting debt in the capital structure for common stock. At the debt ratio of 30%, the firm estimates that te average earnings per share (EPS) would be $3.12 and the standard deviation ..

  What is market value of equity if market value of debt

A firm has a debt-to-equity ratio of 1. Its cost of equity is 12%, and its cost of debt is 6%. If there are no taxes or other imperfections, what would be its cost of equity if the debt-to-equity ratio were 0. Using the information directly above, wh..

  Increase and decrease the cash account

In working capital management, there are some actions that increase or decrease cash. What are some of the items that increase and decrease the cash account, respectively?

  What was flotation cost as percentage of funds raised

The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, the company received $21.65 for each of the 6.65 million shares sold. The initial offering price was $23.50 per share, and the stock rose to $30.01 per share in the first f..

  About the current operating capacity

Alter Bridge Mfg., Inc., is currently operating at only 88 percent of fixed asset capacity. Current sales are $680,000. Fixed assets are $420,000 and sales are projected to grow to $830,000. How much in new fixed assets are required to support this g..

  The net amount of funds that the debt issue

A firm issues $225 million in straight bonds at an original issue discount of 2.0% and a coupon rate of 6%. The firm pays fees of 4% on the face value of the bonds. The net amount of funds that the debt issue will provide for the firm is ________.

  Two securities are combined into equally weighted portfolio

Assume two securities are negatively correlated. If these two securities are combined into an equally weighted portfolio, the portfolio standard deviation must be:

  Calculate some valuation ratios like price-book value

Put a value on both the Target and JCPenney. Calculate some valuation ratios like Price/Book Value, Price/Earnings Per Share (make sure you use fully diluted share numbers), Price/EBITDA Per Share.

  What is nominal yield to maturity

A firm's bonds have a maturity of 8 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 4 years at $1,049, and currently sell at a price of $1,095.04. What is their nominal yield to maturity? What return should investors exp..

  What is the new divisor for the price-weighted index

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $48, $400, and $100, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?

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