Roe exceed the market capitalization rate

Assignment Help Finance Basics
Reference no: EM132288912

1. Eagle Brand Arrowheads has expected earnings of $1.25 per share and a market capitalization rate of 12%. Earnings are expected to grow at 5% per year indefinitely. The firm has a 40% plowback ratio. By how much does the firm's ROE exceed the market capitalization rate?

Answer:0.5%

2. Gagliardi Way Corporation has an expected ROE of 15%. If it pays out 30% of its earnings as dividends, its dividend growth rate will be _____.

Answer: 10.5%

3. A preferred share of Coquihalla Corporation will pay a dividend of $8 in the upcoming year and every year thereafter; that is, dividends are not expected to grow. You require a return of 7% on this stock. Using the constant-growth DDM to calculate the intrinsic value, a preferred share of Coquihalla Corporation is worth _________.

Answer:$114.29

Reference no: EM132288912

Questions Cloud

Which one do you think is the least important : Which one of these, do you think, is the proverbial "nail to the coffin", the one reason that really pushes the revolution forward?
What is the ending inventory using dollar-value LIFO : Concord Corporation began using dollar-value LIFO for costing its inventory two years ago. What is the ending inventory using dollar-value LIFO
Write a three to five page term paper on his life and work : RESEARCH Wayne White and write a three to five page term paper on his life and work. Make sure that you include your opinions and use examples of his work.
Provide a basic biography for arlie russell hochschild : Provide a basic biography for either: Arlie Russell Hochschild, Dorothy E. Smith, or Patricia Hill Collins.
Roe exceed the market capitalization rate : The firm has a 40% plowback ratio. By how much does the firm's ROE exceed the market capitalization rate?
How some of the materials in the museum might challenge : Write an overview of USU's Nora Eccles Harrison Museum of Art. You can find all the information you will need in thier website. You should write a personal.
Describe the importance of having family involved : How can you involve family in the treatment and recovery process? Include at least two inclusive strategies in your response.
What is bbva cost of preferred stock : BBVA issued preferred stock that pays a constant $4.65 dividend. The stock sells for $83 per share. What is BBVA's cost of preferred stock?
Prepare the necessary December entry : Marigold Inc. uses a perpetual inventory system. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method

Reviews

Write a Review

Finance Basics Questions & Answers

  Common action of a corporation that is listed on the nyse

1. Choose a common action of a corporation that is listed on the NYSE and on the basis of prices during the last 60 months to determine their rates of returns during those months and total rate of return; do the same for the same period with the mark..

  Project equivalent annual cost

If the required return is 10 percent, what is this project's equivalent annual cost, or EAC?

  The money european style option on the stock

What must be the price of a 1-year at-the-money European style option on the stock?

  What will be the net cash flow for year one of the project

Your company has spent $390,000 on research to develop a new computer game. The firm is planning to spend $59,000 on a machine to produce the new game.

  The process under statistical control

In their text, Quantitative Analysis of Management (1997), B. Render (Rollins College) and R. M. Stair (Florida State University), present the case of the Bayfield Mud Company. Bayfield supplies boxcars of 50-pound bags of mud treating agents to t..

  Calculate financial ratios

I have several things to accomplish for an indepth corporation analysis on GM for three years. I am having difficulty with collecting the information and doing the ratios. I then have to answer the following questions.

  Te finance company requires you to pay 2990012 or 249167

calculating ear - a local finance company quotes a 15 percent interest rate on one-year loans. so if you borrow 26000

  What is the rate of inflation

The yield to maturity on a bond is currently 8.46 percent. The real rate of return is 3.22 percent. What is the rate of inflation?

  Which of the over four choices would you pick

Which of the over four choices would you pick?

  Visible and accessible level of culture

Symbols of culture are called artifacts. Artifacts are the most visible and accessible level of culture. These include behaviors, stories, rituals (everyday practices that are repeated frequently), and symbols (e.g., company logos, company colors)..

  How much revenue would it have brought to baldwin corp

Baldwin corp ended the year carrying $16,192,000 worth of inventory. Had they sold their entire inventory at their current prices, how much revenue would it have brought to baldwin corp?

  Time series analysis of revenues

Find out a company at that your organization might consider a competitor. Show the time series for revenues over as many years as you can find. Based on this time series, how is the company doing?

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