Sales Revenue 10,000 9,000 Costs Net Income 2,000 Dividends 500 NEXT YEAR QUESTIONS Sales revenue growth 0.16 Forecasted sales revenue 11600 Total Costs Growth 0.1 Forecasted total cost value 9900 Dividends per share (yr Shares outstanding 4 Forecasted net income 2320 900 Forecasted net income GR 1.16058029 Average PE ratio value Required Return 20 Forecasted EPS 2.57777778 14.25 USING PE M Forecasted target stock price 51.5555556 Forecasted total dividends value 580 Forecasted Dividends per share 0.64444444 Stock price quote of $97, what is the expected return in % BUY, SELL, OR HOLD?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How do I solve the expected return percent and know if i should buy or sell it?

Sales Revenue
10,000
Costs
9,000
Net Income
2,000
Dividends
500
NEXT YEAR
QUESTIONS
Sales revenue growth
0.16
Forecasted sales revenue
11600
Total Costs Growth
0.1
Forecasted total cost value
9900
per share (yr
Shares outstanding
Dividends
4
Forecasted net income
2320
900
Forecasted net income GR
1.16058029
Average PE ratio value
20
Forecasted EPS
2.57777778
Required Return
14.25
USING PE M Forecasted target stock price
51.5555556
Forecasted total dividends value
580
Forecasted Dividends per share
0.64444444
Stock price quote of $97, what is the expected return in %
BUY, SELL, OR HOLD?
Transcribed Image Text:Sales Revenue 10,000 Costs 9,000 Net Income 2,000 Dividends 500 NEXT YEAR QUESTIONS Sales revenue growth 0.16 Forecasted sales revenue 11600 Total Costs Growth 0.1 Forecasted total cost value 9900 per share (yr Shares outstanding Dividends 4 Forecasted net income 2320 900 Forecasted net income GR 1.16058029 Average PE ratio value 20 Forecasted EPS 2.57777778 Required Return 14.25 USING PE M Forecasted target stock price 51.5555556 Forecasted total dividends value 580 Forecasted Dividends per share 0.64444444 Stock price quote of $97, what is the expected return in % BUY, SELL, OR HOLD?
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