M. Smith and Family Corporation Data Shares Outstanding 25,000,000 Earnings $50,000,000 Dividends, Per Share (Just Paid) $1.25 Return on Equity 0.15 Beta 1.35
M. Smith and Family Corporation Data Shares Outstanding 25,000,000 Earnings $50,000,000 Dividends, Per Share (Just Paid) $1.25 Return on Equity 0.15 Beta 1.35
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
Related questions
Question
| The M. Smith and Family Corporation | Data |
| Shares Outstanding | 25,000,000 |
| Earnings | $50,000,000 |
| Dividends, Per Share (Just Paid) | $1.25 |
| 0.15 | |
| Beta | 1.35 |
| Market Data | Expected Return |
| Market Return | 0.12 |
| Risk-Free Rate | 0.03 |
| Required: | |
| Using the information in the tables above, complete the necessary steps to calculate the P/E ratio and the PEG ratio. |
| The M. Smith and Family Corporation | Calculations |
| Capitalization Rate | |
| Earnings Per Share | |
| Plowback Rate | |
| Sustainable Growth Rate | |
| Price | |
| P/E Ratio | |
| Sustainable Growth Rate (as Percentage, use for PEG Calculation) | 0 |
| PEG Ratio |
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