What is the forecasted earnings for alpha investments

Assignment Help Finance Basics
Reference no: EM132813699

1. Suppose we are trying to value the company Beta Investments, an investment firm that does not pay dividends. If the appropriate industry PE for this type of company is 15 and you predict earnings to be $5.00 per share for the coming year. What is the forecasted stock price for a year from now?

2. Suppose the stock price of the company Alpha Investments, an investment firm that does not pay dividends, is $210.00. If the appropriate industry PE for this type of company is 5. What is the forecasted earnings for Alpha Investments?

Reference no: EM132813699

Questions Cloud

Calculate the beta of the stock : A stock's return is 47% on average when the economy is strong and -20% when the economy is weak. Calculate the beta of the stock.
Compare disadvantage of act-utilitarianism and virtue ethics : Compare the advantages and disadvantages of act-utilitarianism and virtue ethics. Which do you think is the better theory? How would combine the two approaches
Estimate the intrinsic value of Firm X common shares : If Firm X's required return on equity is 11 percent, estimate the intrinsic value of Firm X's common shares today based on the two-stage growth model
Explain corrigans model of the stages of stigma : Briefly explain Corrigan's model of the stages of stigma and his recommendations and hierarchy about recovery. Explain whether Delle's experience follows.
What is the forecasted earnings for alpha investments : If the appropriate industry PE for this type of company is 5. What is the forecasted earnings for Alpha Investments?
Discuss the ethical issues involved in school immunization : Discuss the ethical issues involved in school immunization requirements. In particular, address when (if ever) you believe that parents should be allowed
How much should the operations manager be willing to pay : How much should the operations manager be willing to pay for accurate information (i.e. what is the Expected Value of Perfect Information, EVPI?)
Explain what debt investments are investment grade : 1. Explain what debt investments are investment grade. What rate of return would you expect on investment grade debt versus other non-investment grade debt
How hill idea of virtue versus rights discussion : Discuss how Hill's idea of virtue (what sort of person are you) versus rights (what you can legally do) impacts our discussion of environmental issues.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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