What is the current price of the stock

Assignment Help Finance Basics
Reference no: EM133068794

1. A stock has a price of $40.4 and earnings per share of $3.11. What is the price-earnings ratio? Enter your response below rounded to 2 DECIMAL PLACES.

2. A preferred stock will have an annual dividend next period of $2.17 that will be paid in perpetuity. The discount rate is 9.4%. What is the current price of the stock? Enter your response below rounded to 2 DECIMAL PLACES.

3. A company is expected to have earnings per share of $3.4 this year and to pay a dividend of $2.33. The discount rate for the stock is 17.4% and the rate of return on reinvested earnings is 20.6%. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below rounded to 2 DECIMAL PLACES. % Click "Verify" to proceed to the next part of the question.

4. Consider a stock that is expected to pay a dividend of $1.32 one year from now. The dividend is expected to grow at a constant rate of 1.5% per year forever. Firms in the same industry provide an expected rate of return of 13.2%. What is the current price of the stock? Enter your response below rounded to 2 DECIMAL PLACES.

Reference no: EM133068794

Questions Cloud

Describe the characteristics of a chatbot : Describe the characteristics of a chatbot and how current AI capabilities can be adapted to develop a chatbot capable of mimicking human personalities
Present value of the cash flows : All cash flows are received at year-end. What is the present value of the cash flows from the company's operations?
What is the current value of your settlement : You win a judgment in an auto accident case for $90,000. If the interest rate is 6 percent, what is the current value of your settlement
Estimate the number of non-gp employees : To understand the potential financial impact of doubling assets under management, estimate a16z's "steady-state" annual revenue and its costs before GP compensa
What is the current price of the stock : 1. A stock has a price of $40.4 and earnings per share of $3.11. What is the price-earnings ratio?
Engaging in use of electronic cigarettes : Health consumers of all ages, including youth, are engaging in the use of electronic cigarettes. Using information found at the Centers for Disease Control (CDC
Calculate the average price per barrel : On June 15, 2020 a mid-size crude oil producer (OP) in west Texas had a contract to sell 25,000 barrels of crude oil to refinery RR on SEP 17, 2020; NOV 17, 202
What is the future value : Question - What is the future value of $10,000 at an interest rate of 12% and 2 annual periods of compounding
What dollar amount must be set aside annually : The package calls for $25 million in bonds to be repaid in 20 years. What dollar amount must be set aside annually at year end by the hospital

Reviews

Write a Review

Finance Basics Questions & Answers

  Justify the rise in healthcare firm prices

Discuss how to justify the rise in healthcare firm prices. Use information from Case Hospital found in your readings to support your discussion and justificatio

  Write an email to tell employees about a product recall

As the vice president of public relations at GM, you just wrote the following news release about vehicle recalls. Next, you will work with the vice president of human resources to communicate this news to employees.

  Discuss about the discounting mirr

Assume that the Boilermaker Investment Company takes on a project that will have them heating ten buildings at Purdue University for a period of 3 years.

  Forecasting of expected future earnings

1. The concept of accounting quality has several dimensions, but two characteristics often dominate: the accounting information should be a fair representation

  Discuss the inclusion of income from illegal sources

Why do we exclude unrealized gains, such as the increased value in your home before it sold, in gross income? Also discuss the inclusion of income from illegal

  Find its bulk modulus of elasticity

A liquid in a cylinder has a volume of 1200 cm3 at 1.25 MPa and a volume of 1188 cm3 at 2.50 MPa. Determine its bulk modulus of elasticity.

  What will the marginal cost of capital be immediately

The firm has $15 million in retained earnings. After a capital structure with $15 million in retained earnings is reached (in which retained earnings represent 60 percent of the financing), all additional equity financing must come in the form of ..

  State briefly the two rules pertaining to reversing entries

The following account balances were taken from the records of Brooks Company on December 31, 1989.  Each account has a normal balance.

  Determining the market price of the share

Sandy and company has 10 million shares at the market price of INR 150 per share. The company intends to pay dividends of INR

  Work out the variance of the market portfolio

The economy of a certain country consists of four sectors. In terms of market capitalization, Sector 1 makes up 15% and Sector 2

  Explain simpson paradox

-Explain Simpson's paradox and provide an example different from the one listed in your textbook.

  What is the stock required rate of return

Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stock's required rate of return?

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