What is the price-earnings ratio

Assignment Help Financial Management
Reference no: EM131909548

1. Discount Mart has $876,400 in sales. The profit margin is 3.8 percent. There are 32,500 shares of stock outstanding. The market price per share is $21.60. What is the price-earnings ratio?

2. While this chapter utilizes dividend payouts to value a share of stock, many companies do not pay dividends. Why would investors be willing to buy shares in non-dividend paying companies? Under what circumstances might a company appropriately choose to not pay dividends?

Reference no: EM131909548

Questions Cloud

Find the present value of asset d : Using the information provided in the table, find the value of each asset.Find the present value of Asset D.
Does the culture of firm get reflected in appetite for risk : Does the culture of a firm get reflected in its appetite for risk or vice versa? Is there an audit plan to account for culture; is culture a control.
Compute the expectation and variance of the return : Compute the expectation and variance of the return of each investment and their co-variance od the two investments.
How much should he pay today for the annual membership : If the appropriate interest rate is 12%, how much should he pay today for the annual membership?
What is the price-earnings ratio : The profit margin is 3.8 percent. There are 32,500 shares of stock outstanding. The market price per share is $21.60. What is the price-earnings ratio?
What is the evidence for and the presumed effects : What is the evidence for and the presumed effects of climate change in a grassland ecosystem?
What is company total market value of debt : What is the company’s total market value of debt? What is the company’s total book value of debt?
What is the value of your futures position on monday : What is your daily gain or loss on your futures position (on Tuesday, Wednesday, Thursday, and Friday)?
Removal of phosphorus from the wastewater : How effective does the removal of phosphorus from the wastewater have to be to make phosphorus the limiting element?

Reviews

Write a Review

Financial Management Questions & Answers

  How long must you wait from now to earn that amount

You expect to receive $7173 at graduation in two years. You plan on investing it at 11.7 percent until you have $68591. How long must you wait from now to earn

  What is the maximum sales growth rate north

North Construction had $850 million of sales last year, and it had $425 million of fixed assets that were used at only 80% of capacity. What is the maximum sales growth rate North could achieve before it had to increase its fixed assets?

  What will be your annual loan payments

You need $20,000 to purchase a used car. What will be your annual loan payments?

  What is the firm after-tax component cost of debt

What is the firm's after-tax component cost of debt for purposes of calculating the WACC?

  Sold those shares and realized a total return

One year ago, you purchased 600 shares of a stock. This morning you sold those shares and realized a total return of 3.1 percent. Given this information, you know for sure the:

  How should the portfolio manager immunize the portfolio

The December Treasury bond futures price is currently 91-12 and the cheapest-to-deliver bond will have a duration of 8.8 years at maturity. How should the portfolio manager immunize the portfolio against changes in interest rates over the next 2 m..

  Budget serves in accomplishing its strategic objective

Define what tasks a budget van accomplish and explain 4 basic functions that budget serves in accomplishing its strategic objective for a company.

  Explain how a obhc differs from a mbhc

Explain how a OBHC differs from a MBHC. How does each of these differ from a financial services holding company?

  What is the present value of all future earnings

Analysts predict that a company's earning will grow at 30% per year for the next five years. After, earnings growth is expected to slow down to 6% a year and continue at that rate forever. The company's earnings are $2 million. What is the present va..

  What must expected return on the market be

A stock has an expected return of 16.5 percent, its beta is 1.50, and the risk-free rate is 4.5 percent. What must the expected return on the market be?

  What is the cost of equity

The Outlet has unlevered cost of capital of 14.2 percent-tax rate of 35 percent-expected earnings before interest-taxes of $23,400. What is the cost of equity?

  Weight of each stock in minimum variance portfolio

Consider two stocks, Stock D, with an expected return of 20 percent and a standard deviation of 35 percent, and Stock I, an international company, with an expected return of 8 percent and a standard deviation of 23 percent. The correlation between th..

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