Investor Integrity wants to buy share, P100 par value from Honesty Company. According to his research, Honesty Company’s share come with a constant dividend of P5 per share up to 2021. Investor Integrity intends to hold the share for a longer time and no plans in selling it in the future. Honesty Company sells its share for P110 per share. Investor Integrity requires a 20% return on all of his investment. In 2022, Honesty Company shows the following information (see image below). What is the price/earnings ratio of Honesty Company share?
Investor Integrity wants to buy share, P100 par value from Honesty Company. According to his research, Honesty Company’s share come with a constant dividend of P5 per share up to 2021. Investor Integrity intends to hold the share for a longer time and no plans in selling it in the future. Honesty Company sells its share for P110 per share. Investor Integrity requires a 20% return on all of his investment. In 2022, Honesty Company shows the following information (see image below). What is the price/earnings ratio of Honesty Company share?
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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Investor Integrity wants to buy share, P100 par value from Honesty Company. According to his research, Honesty Company’s share come with a constant dividend of P5 per share up to 2021. Investor Integrity intends to hold the share for a longer time and no plans in selling it in the future. Honesty Company sells its share for P110 per share. Investor Integrity requires a 20% return on all of his investment. In 2022, Honesty Company shows the following information (see image below).
What is the price/earnings ratio of Honesty Company share?
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