Determine market price of a share, Finance Basics

Assignment Help:

What is the market price of a share of stock for a firm that pays dividends of $1.20 per share, has a P/E of 14, and a dividend payout ratio of 0.4? 

market price of a share

a

Dividend per share

   

 mce_markernbsp;                                1.20

b

Dividend payout ratio

 

0.4

c

P/E

     

14

d

Earning per share (a/b)

 

 mce_markernbsp;                                3.00

e

Market Price (d x c)

   

 mce_markernbsp;                              42.00

 


Related Discussions:- Determine market price of a share

Calculate total number of ordinary shares, Calculate total number of ordina...

Calculate total number of ordinary shares Example Company XYZ Ltd has sold 10,000 ordinary shares of Shs.30 as partly called up plus 20,000 Shs.45 preference shares, tha

Competitors and general public, Competitors and General Public - Measuring ...

Competitors and General Public - Measuring Business Performance Competitors These are interested in the company's presentation from the market share point of view and wi

Suggestion regarding credit limit, Suggestion Regarding Credit Limit. Shoul...

Suggestion Regarding Credit Limit. Should It Be Approved Or Not, W, Finance

Net advantage to leasing, 1. Biily Mays , Inc, (BMC) is interested in acqui...

1. Biily Mays , Inc, (BMC) is interested in acquiring a 1 million pre to print and circulate its meages. The press has 8 years useful life at the end of which its expected to be 90

Classification of preference share capital, Classification of Preference Sh...

Classification of Preference Share Capital i) Redeemable Class Redeemable preferential shares are bought back via Issue Company after minimum redemption duration however

Floatation of new shares, Floatation of New Shares Rules for floatati...

Floatation of New Shares Rules for floatation of new shares The company must contain an issued share capital of at least Kshs.20 M. The company must contain c

Development of lease finance in middle asia, Development of Lease Finance i...

Development of Lease Finance in Middle Asia Reasons Why Lease Finance Is Not Well Developed In Middle Asia 1. Lease charges are generally prohibitive that is the cost

Matching approach - financing current assets, Matching Approach - Financing...

Matching Approach - Financing Current Assets This approach is further referred to as the hedging approach. Beneath this approach, the firm adopts a financial plan that involve

Write Your Message!

Captcha
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