Rare Earth Corp. is trading at a forward P/D (price-to-dividend) ratio of 100, a forward P/E ratio of 50 and a P/B ratio of 12. What is Rare Earth Corp.'s implied cost of equity ( Te ) equal to:

Q: A firm has a weighted average cost of capital of 8.4%, a cost of equity is 11%, and a pretax cost of…

A: GivenWeighted Average Cost of Capital (WACC) = 8.40%Company's Cost of Equity =11%Pre-tax cost of…

Q: Sun Pharma Company earns Rs 10 per share, is capitalized at a rate of 12 per cent and has a rate of…

A: The question is related to Dividend Policy. The Price of Share as oer Gorden's Model is calculated…

Q: The following information relates to A Ltd and B Ltd. Two companies which operate in the same…

A: Earning Per Share- Earning Per Share is the ratio of a company's earnings for its equity…

Q: Sixx AM Manufacturing has a target debt—equity ratio of 1.6. Its cost of equity is 0.11, and its…

A: Weight of debt = (D/E)(1+D/E) Where, D/E is debt to equity ratio Weight of debt = 1.61+1.6 =…

Q: what is its equity beta?

A: Equity beta also termed as stock beta or levered beta refers to the tool or method used to determine…

Q: Whit is Correct option

A: To calculate the operating cash flow (OCF) for the firm, you can use the following formula: OCF =…

Q: Martin Manufacturing stock has a market value of $45 a share. If the book value is $25 a share, the…

A: Market Value per share = $45Book Value per share = $25The market-to-book ratio is compares a…

Q: Bishop Co has previously calculated figures as follows: Ke = 18.5%, market value of 1 ordinary share…

A: WACC is Weighted Average Cost of Capital which refers to the firm's cost of capital in which each…

Q: Suppose firm A has just earned BDT 5 per share out of which it retained BDT 3 and paid out the…

A: Given Information : Earning per share = BDT 5 Retained amount per share = BDT 3 Required rate of…

Q: Azoka Ltd has a market debt-equity ratio of 0.5. Assume its current debt cost of capital is 6.5%,…

A: The weighted average cost of capital (WACC) is the minimum rate of return that a company is expected…

Q: What is the justified leading P/E ratio of the Tencent Holdings Ltd. given the following…

A: The objective of this question is to calculate the justified leading Price/Earnings (P/E) ratio for…

Q: 16. LSP Manufacturing recently reported Net income of $350,000, Intere expense $112,000. It has ROA…

A: Bartleby honor code states that when various questions are asked, the expert should answer only the…

Q: Jack Corp. has a profit margin of 3.5 percent, total asset turnover of 2.9, and ROE of 18.58…

A: Given information : Profit margin       0.035 Total asset turnover 2.9 Return on equity…

Q: 0. Company – U and company – L are similar in all respects, except U is unlevered and L is having…

A: Leverage refers to the use of debt in the capital structure of the company. The capital structure…

Q: Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.76 and a book value of equity…

A: EPS $   1.76Book Value of Equity $ 12.93Average PE Multiple15.01

Q: ration A traded at a P/B (price-to-book) ratio of 0.5. Its most recent reported ROCE is 10% and its…

A: The ROCE is return on total capital debt ,loan and equity employed by the company and return on…

Q: Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the…

A: Return on equity(or ROE) = Return on assets×Equity multiplier Equity multiplier is calculated as…

Q: Face Mask Company has a Total Sales of P100,000,000. Its total assets is 50,000,000 and a profit…

A: The mathematical equation:

Q: Tranquility, Inc. has common shares with a price of $18.37 per share. The firm paid a dividend of…

A: We can use the Gordon Growth Model (GGM) to solve this problem. The Gordon Growth Model, also known…

Q: Queen, Inc., has a total debt ratio of 0.04. What is its equity multiplier?

A: The phrase "equity multiplier" describes a risk indicator that calculates the percentage of a firm's…

Q: n model holds, wl that the mark ure

A: Given information : EPS  ₹        5.00 ROE 16% Market price  ₹      50.00 DPR 40% Since…

Q: How much is the cost of equity using the bond plus risk premium?

A: In the Bond plus Risk Premium Method, We take the Return on Company's Bond and add a premium for the…

Q: A firm has a profit margin of 35.92, return on assets of 25.86 and a debt to equity ratio of 1.489.…

A: The  calculation of return on equity ,Return of equity is the measure of company annual return as it…

Q: g information is for Cougar Corp. an appliance manufacturer. Given this information determine…

A: The implied rate is the interest rate that is calculated by subtracting the spot rate from the…

Q: Corporation X, with a current market value of P62, gave a dividend of P9 per share for its common…

A: The stock yield ratio determines how much cash flow an investor is earning for each rupee invested…

Q: Andyco, Inc., has the following balance sheet, WACC calculation? and an equity market-to-book ratio…

A: WACC is also known as Weighted Average Cost of Capital. It includes the cost of debt, cost of Equity…

Q: w much is the cost of equity using the capital asset pricing model? b. How much is the cost of…

A: In this we have to determine the cost of equity using capital asset pricing model.

Q: ) For a listed company of ABC, total book value of assets is 40 million, total market value of…

A: Shareholders are the owners of the company and true value of company is market value of the…

Q: Find the firm’s Cost of equity, given only the following information about the firm: the firm’s cost…

A: The cost which the firm has to bear for having equity funds in their capital structure is called…

Q: The weights that Genghis should apply in estimating Bulldogs Inc.’s cost of capital for debt and…

A: Weighted average cost of capital (WACC) refers to the combined cost of company's capital from all…

Q: over/undervalued by ___ compared to the group average.

A: Group average = (5+5.25+4.80+4.90+5.30)/5  = 25.25/5  = 5.05

Q: Queen, Inc., has a total debt ratio of 0.11. What is its equity multiplier?

A: Equity Multiplier = 1 / (1 - Debt ratio)

Q: Raysut Cement has a preferred share issue outstanding with a current price of OMR 26.57. The firm is…

A: Preferred shares are the stocks that have a preference over the common stocks of the company, which…

Q: 19. Firm X has a Return on Equity (ROE) equal to 15%, a total debt ratic equal to 0.6. If the firm…

A: Ratio analysis of the financial statement helps in evaluating the performance of the company as…

Q: Bruder & Co is a company with a market debt-equity ratio of 1.00. Suppose its current cost of debt…

A: a) Determine the cost of equity after the transaction:We'll use the Capital Asset Pricing Model…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.