No-Growth Industries pays out all of its earnings as dividends. It will pay its next $4 per share dividend in a year. The discount rate is 11%. What is the price-earnings ratio of the company? What would the P/E ratio be if the discount rate were 10%?
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- The Evanec Company’s next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share.a. What is Evanec’s cost of retained earnings, rs?b. What is Evanec’s percentage flotation cost, F?c. What is Evanec’s cost of new common stock, re?The Evanec Company's next expected dividend, D1, is $2.69; its growth rate is 7%; and its common stock now sells for $35.00. New stock (external equity) can be sold to net $31.50 per share. What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. rs = % What is Evanec's percentage flotation cost, F? Round your answer to two decimal places. F = % What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. re = %Barton Industries expects next year's annual dividend, D1, to be $2.50 and it expects dividends to grow at a constant rate g = 4.3%. The firm's current common stock price, P0, is $20.00. If it needs to issue new common stock, the firm will encounter a 6% flotation cost, F. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your answer to two decimal places. % What is the cost of new common equity considering the estimate made from the three estimation methodologies? Do not round intermediate calculations. Round your answer to two decimal places. %
- The Evanec Company's next expected dividend, D1, is $3.08; its growth rate is 4%; and its common stock now sells for $39.00. New stock (external equity) can be sold to net $31.20 per share. a. What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. rs b. What is Evanec's percentage flotation cost, F? Round your answer to two decimal places. F = % c. What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. re = %Forward Inc. just reported annual earnings of $1 per share this year. The firm's ROE is 0.10% and its earnings retention ratio is 0.6%. If the firm's market capitalization rate (Rs) is 15%, How much is the P/E ratio (P0/E1)?Kindly help me with accounting questions
- Need help with this accounting questionsA firm in steady-state earned $5 per share this year and paid a $4 dividend. The firm is currently selling for $55. Assume an ROE of 8% and a constant discount rate of 10% 1 Calculate the current P/E ratio. 2 Calculate the justified current P/E ratio. 3 Calculate the intrinsic value of the firm. 4 Calculate the forward P/E ratio. S Calculate the justified forward P/E ratio.Hypothetics Inc. has just paid the annual dividend to shareholders based on $5 earnings per share over the past year. It is a firm policy of Hypothetics to use a plowback ratio of 40%. The company’s return on equity is 15%. You have estimated the risk-adjusted discount rate to be 12%. What is the forward price-earnings ratio ( P1E1P1E1 )? (Round your answer to four decimal places.)