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- Assume that company A is similar in terms of industry and other characteristics to firms B, C, and D. If you are using the average P/E ratio of the comparable firms, what should the price of Stock A be if it's expected earnings are $2.25 per share? Stock Stock B Stock C Stock D $18.93 $18.98 $60.77 $60.95 Price per share $37.22 $56.92 $421.34 Earnings per share $2.05 $2.96 $1.09 AVERAGE P/E Ratioq3. Assume Firm ABC has expected earnings per share (EPS) of $0.43, and the industry’s P/E ratio is 18. What is the intrinsic value of the stock? Show all work.The company's asset turnover is 0.9 payout ratio is 0.60 and price earnings ratio is 10, the dividend yield on common stock would be ___%?
- 16. O'Brien Inc. has the following data: TRF = 5.00%; RPM = 6.00%; and b = 1.10. What is the firm's cost of equity from retained earnings based on the CAPM? a. 11.83% b. 13.22% C. 11.25% d. 8.93% e. 11.60% istiqaA firm has common stock with D1 = $3.00; P0 = $30; g = 5%; andF = 4%. If the firm must issue new stock, what is its cost of externalequity, re? (15.42%)Calculate the missing information for the following stock. Show your work. Company Earnings per Share Annual Dividend Current Price per Share Current Yield Price-Earnings Ratio Sampson, Inc. ? $0.39 $26.50 ? 22
- JPM has earnings per share of $3.75 and P/E of 47. What is the stock price?If the common stock of Comdisco pays an annual dividend of $0.28, has a PE ratio of 11, and closed at 25, what are the current earnings per share? a. $7.00 b. $2.27 c. $3.08 d. $1.12Assume you are given the following information for firms A and B: A В $1,563,400.00 $2,357,316.00 $2,051,347.00 $1,257,431.00 Price $31.25 $31.25 i 13.52% 13.52% EBIT $97,347.00 $97,347.00 No taxes How do you replicate an investment in 79% of stock B by using stock A? What is the return of the replicating strategy?
- PQR Co. has earnings of $2.66 per share. The benchmark PE for company is 19. What stock price (to two decimals) would you consider appropriate?Assume that a company’s beginning-of-period price is $17 per common share, its dividends are $1 per share, and its expected cost of equity capital is 10%. What is the expected end-of-period price per common share? Round answer to two decimal places. $AnswerFirm A’s D1 = $1.75 / share. Secondly, growth rate = -1.5%. return =14%. Calculate stock price. A) $11.29 B) $12.64 C) $13.27 D) $14.00 E) $14.21
