Use the p-e approach to set value on this stock

Assignment Help Financial Management

Reference no: EM132019494

AviBank Plastics generated an EPS of $3.39 over the last 12 months. The company's earnings are expected to grow by 24.6% next year, and because there will be no significant change in the number of shares outstanding, EPS should grow at about the same rate. You feel the stock should trade at a P/E of around 26 times earnings. Use the P/E approach to set a value on this stock.

Reference no: EM132019494

Questions Cloud

What would be the standard deviation of portfolio : What would be the standard deviation of a portfolio that consists of 30% of the first security and 70% of this second security

How has modern technology been a detriment to the us : How has modern technology been a detriment to the U.S. counterintelligence mission? Explain.

Maturity risk premium on the two-year treasury security : Calculate the maturity risk premium on the 2-year Treasury security

Explain the four truth test and illustrate each with example : Explain the four truth tests and illustrate each with an example of a belief that would be true by its standards.

Use the p-e approach to set value on this stock : You feel the stock should trade at a P/E of around 26 times earnings. Use the P/E approach to set a value on this stock.

What are various ways the gospel message is perceived : What are various ways the gospel message is perceived in our culture?What are some specific moral reasons people may reject the gospel message?

What is the document called that lists the terms of bond : What is the document called that lists the terms of a bond? Under which circumstance can the WACC be used in investment appraisals.

What is your personal reaction to their work : What steps have they taken to use art to make a difference for others who may find themselves in socially unjust circumstances?

Ways to achieve the desired best practices : Increased number of presentations given by women at both local and national conferences. Women report feeling more supported by their employer.

User Account

All Pages