B20 x✓ fx A B 5 Earnings 6 4 Shares Outstanding Dividends, Per Share (Just Paid) 7 Return on Equity 8 Beta 9 10 Market Data 11 Market Return 12 Risk-Free Rate 13 25,000,000 $50,000,000 $1.25 0.15 1.35 Expected Return 0.12 0.03 14 Required: 15 16 Using the information in the tables above, complete the necessary steps to calculate the P/E ratio and the PEG ratio. 17 (Use cells A4 to B12 from the given information to complete this question.) 18 19 The M. Smith and Family Corporation 20 Capitalization Rate 21 Earnings Per Share 22 Plowback Rate 23 Sustainable Growth Rate 24 Price 25 P/E Ratio 26 Sustainable Growth Rate (as Percentage, use for PEG Calculation) 27 PEG Ratio 28 29 Calculations $2.00 0.375 0.056 5.625

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
B20
x✓ fx
A
B
5
Earnings
6
4 Shares Outstanding
Dividends, Per Share (Just Paid)
7
Return on Equity
8
Beta
9
10
Market Data
11 Market Return
12 Risk-Free Rate
13
25,000,000
$50,000,000
$1.25
0.15
1.35
Expected Return
0.12
0.03
14 Required:
15
16
Using the information in the tables above, complete the necessary steps to calculate the P/E
ratio and the PEG ratio.
17 (Use cells A4 to B12 from the given information to complete this question.)
18
19
The M. Smith and Family Corporation
20 Capitalization Rate
21 Earnings Per Share
22 Plowback Rate
23
Sustainable Growth Rate
24 Price
25 P/E Ratio
26 Sustainable Growth Rate (as Percentage, use for PEG Calculation)
27 PEG Ratio
28
29
Calculations
$2.00
0.375
0.056
5.625
Transcribed Image Text:B20 x✓ fx A B 5 Earnings 6 4 Shares Outstanding Dividends, Per Share (Just Paid) 7 Return on Equity 8 Beta 9 10 Market Data 11 Market Return 12 Risk-Free Rate 13 25,000,000 $50,000,000 $1.25 0.15 1.35 Expected Return 0.12 0.03 14 Required: 15 16 Using the information in the tables above, complete the necessary steps to calculate the P/E ratio and the PEG ratio. 17 (Use cells A4 to B12 from the given information to complete this question.) 18 19 The M. Smith and Family Corporation 20 Capitalization Rate 21 Earnings Per Share 22 Plowback Rate 23 Sustainable Growth Rate 24 Price 25 P/E Ratio 26 Sustainable Growth Rate (as Percentage, use for PEG Calculation) 27 PEG Ratio 28 29 Calculations $2.00 0.375 0.056 5.625
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