Estimate the value of a share of stock given the following information: a forward PE ratio of 15, current (year 0) EPS of $1.5, and analyst expected EPS of $1.6 next year.
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- What should you pay for a stock assuming you expect the following: a dividend of 1.50 paid at the end of years 1 and 2; cost of equity equal to 16 percent; and, a selling price of 45 at the end of two years?Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 $ 793 2,428 2019 $1,021 1,935 $2,956 2018 $ 883 1,734 $2,617 Current assets Other assets Total assets $3,221 Current liabilities Long-term liabilities Stockholders' equity $ 592 1,607 1,022 $3,221 $ 845 1,070 1,041 $2,956 $ 742 942 933 Total liabilities and stockholders' equity $2,617 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2819 (in millions) 2020 2019 Income statement data: Sales $3,965 311 99 236 $2,928 325 Operating income Interest expense Net income Other data: Average number of common shares outstanding Total dividends paid 231 48.2 S 53.8 Required: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate return on ecuity for 2020 and 2019. c. Calculate working capital and the current ratio for…Perferred Stock valuation. Stock that sells for $30.00 a share and pays dividend of $2.75 at the end of a year. What is the required rate of return?
- An analyst gathered the following information for a stock and market parameters: stock beta = 1.42; expected return on the Market = 11.41%; expected return on T-bills = 2.12%; current stock Price = $9.64; expected stock price in one year = $12.81; expected dividend payment next year = $1.54. Calculate the required return for this stock. Please share your answer as a percentage rounded to 2 decimal places.(Common stockholder expected return) The market price for the EarnestCorporation’s common stock is $43 per share. The price at the end of 1 year is expected to be $48, and dividends for next year should be $2.84. What is the expected rate of return?Use the price and dividend information in the following table for stock ABC to answer the following questions. a) Assuming dividends are fully reinvested (at the ex-div stock price), what is the geometric average annual return for an investment in stock ABC from 26/4/2017 to 31/12/2020? Give your answer as a discrete annual rate. b) What is the IRR of an investment in stock ABC from 26/4/2017 to 31/12/2020 assuming you do not reinvest dividends? Give your answer as an annual continuously compounding rate. c) What is the IRR of an investment in stock ABC from 26/4/2017 to 31/12/2020 assuming you do not reinvest dividends and you liquidate half of your shareholding on 31/12/2019 at a stock price of $34.22? Give your answer as an annual continuously compounding rate. I need Quality solution. U will get up vote for quality answer
- An analyst gathered the following information for a stock and market parameters: stock beta= 1.08; • expected return on the Market = 11.97%; • expected return on T-bills = 1.55%; • current stock Price = $9.01; • expected stock price in one year = $11.14; • expected dividend payment next year = $3.23. Calculate the expected return for this stock. Please share your answer as a percentage rounded to 2 decimal places.An analyst gathered the following information for a stock and market parameters: stock beta = 1.23; expected return on the Market = 9.32%; expected return on T-bills = 4.75%; current stock Price = $9.08; expected stock price in one year = $13.1; expected dividend payment next year = $3.8. Calculate the expected return for this stock. Please share your answer as a percentage rounded to 2 decimal places.provide ans..
