The market capitalization rate on the stock

Assignment Help Financial Management

Reference no: EM131354479

The market capitalization rate on the stock of Funky Asphalt, Inc. is 8.8%. Its expected ROE is 13.4% and its expected EPS is $5.8. If the firm's plow-back ratio is 58%, what is the expected P/E ratio

Reference no: EM131354479

Questions Cloud

What is the most you would pay for this stock : You are planning to buy a stock and hold it for 2 years. You expect to receive $2 in dividends at the end of each year and then you expect to sell the stock after 2 years for $30. If your required return is 6%, what is the most you would pay for this..

Maturity has coupon rate : A U.S. government T Note with a 2 year maturity has a coupon rate of 10% and a face value of $1000. the coupons are paid annually and the next coupon is due in one year. The T note's yield to maturity is 10%. What is this T note's modified duration?

What is the length of the firm cash conversion cycle : Baloon Payment Financial (BPF) has an inventory conversion period 0f 45 days, and a payables deferall period of 20 days. What is the length of the firm's cash conversion cycle? If BPF's annual sales are $1.8 million and all sales are on credit, what ..

What is the expected return on the portfolio : You own a portfolio that has $2,750 invested in Stock A and $3,900 invested in Stock B. If the expected returns on these stocks are 9 percent and 14 percent, respectively, what is the expected return on the portfolio?

The market capitalization rate on the stock : The market capitalization rate on the stock of Funky Asphalt, Inc. is 8.8%. Its expected ROE is 13.4% and its expected EPS is $5.8. If the firm's plow-back ratio is 58%, what is the expected P/E ratio

Is the project without interest tax gain profitable : Entrata AS has a market-weighted target equity ratio ( "Target debt Proportion") of 40% and debt has a coupon of 3.4% per year (annual interest payment). Corporate cost of capital without debt ( "unlevered") is 7%. The company pays 25% corporation ta..

What would be appropriate estimate of stock price today : A company is expected to have earnings of $3.03 per share next year, $4.28 in two years, and $5.79 in three years. The dividend payout ratio is expected to remain at 40% over the next three years. You estimate the risk-free rate to be 4% per year and..

What is the true initial cost figure the company : Caughlin Company needs to raise $55 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. What is the true initial cost figure the company should use whe..

Bank compounds interest annually : Assume that it is now january 1, 1997. On january 1, 1998, you will deposit $1,000 in to a savings account that pays 8 percent. If the bank compounds interest annually, how much will you have in your account on january 1, 2001? What would your januar..

User Account

All Pages