A stock sells at $15 per share. a. What is the EPS for the company if it has a P/E ratio of 20? Round your answer to the nearest cent. $ b. If the company's dividend yield is 4 percent, what is its dividend per share? Round your answer to the nearest cent. $ c. What is the book value of the company if the price-to-book ratio is 1.5 and it has 400,000 shares of stock outstanding? Round your answer to the nearest dollar. $

A stock sells at $15 per share. a. What is the EPS for the company if it has a P/E ratio of 20? Round your answer to the nearest cent. $ b. If the company's dividend yield is 4 percent, what is its dividend per share? Round your answer to the nearest cent. $ c. What is the book value of the company if the price-to-book ratio is 1.5 and it has 400,000 shares of stock outstanding? Round your answer to the nearest dollar. $

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.3 percent indefinitely. The company just paid a dividend of $3.80 and you feel that the required return on the stock is 12.3 percent. What is the price per share of the company's stock?
Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50%. The maintenance margin is 35%. How far does the price of the stock rise for you to get a margin call? a) $33.33 b) $34.62 c) $32.14 d) $38.74 e) $40.50
A biotechnology company's stock is currently selling for $46.35 per share. The earnings per share are $2.14, and the dividend is $1.80. (a) What is the current yield of the stock (as a %)? (Round your answer to the nearest tenth of a percent.) % (b) What is the price-earnings ratio? (Round your answer to the nearest whole number.)
Big Oil, Inc. has a preferred stock outstanding that pays a $8 annual dividend. If investors’ required rate of return is 10 percent, what is the market value of the shares? Round your answer to the nearest cent. $ If the required return declines to 8 percent, what is the change in the price of the stock? Round your answer to the nearest cent. The price by $ .
Give typing answer with explanation and conclusion A share of common stock is paying $3.50 per share, but the corporation only pays 40% of its earnings as cash dividends. The anticipated growth of this stock is 8%. Find the value of this stock if an investor wants a yield of 10%. If the stock is selling for $45, what is the expected yield?
The Beautiful Flower Company. has earnings of $1.44 per sharee. a. If the benchmark PE for the company is 13, how much will you pay for the stock? b. If the benchmark PE for the company is 16, how much will you pay for the stock?
Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy 700 shares of stock at $61 per share. You put up $27,755. One year later, the stock is selling for $75 per share and you close out your position. What is your return assuming a dividend of $0.90 per share is paid?
The stock of North American Danduff Company is selling at $80 per share. The firm pays a divdend of $2.50 per share. a) What is the dividend yield? b) If the firm has a payout rate of 50% , what is the firm's P/E ratio?
A biotechnology company's stock is currently selling for $48.35 per share. The earnings per share are $2.14, and the dividend is $1.80. (a) What is the current yield of the stock (as a %)? (Round your answer to the nearest tenth of a percent.) % (b) What is the price-earnings ratio? (Round your answer to the nearest whole number.)
A biotechnology company's stock is currently selling for $48.35 per share. The earnings per share are $2.14, and the dividend is $1.60. (a) What is the current yield of the stock (as a %)? (Round your answer to the nearest tenth of a percent.) % (b) What is the price-earnings ratio? (Round your answer to the nearest whole number.)
elizabeth eaarns $9.50 a share, sells for $90, and pays a $6 per sharedeviden. the stock is split two for one and a $3 pers share cash dividend is diclared. what will be the new price of the stock? if the firms total earnings to do not change, what is the payout ratio before and after stock split?
Jersey Medical earns $12.50 a share, sells for $100, and pays a $6 per share dividend. The stock is split two for one and a $3 per share cash dividend is declared. a. What will be the new price of the stock? Round your answer to the nearest dollar. $ b. If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place. Payout ratio before the split: Payout ratio after the split: % %

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