Shares Outstanding 80 3. Using the income statement and balance sheet above. Calculate the following: a) The price using the DDM. b) The leading P/E Ratio. c) The forward P/E Ratio.
Shares Outstanding 80 3. Using the income statement and balance sheet above. Calculate the following: a) The price using the DDM. b) The leading P/E Ratio. c) The forward P/E Ratio.
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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Transcribed Image Text:Use the following information to answer questions 3-5
Income Statement
Revenue
Depreciation
Other Operating Costs
Taxes
NI
$474
$20
$368
$26
$60
Dividends
$24
Shares Outstanding 80
Balance Sheet
Current Assets
Fixed Assets
Current Liabilities
Long Term Debt
Shareholders Equity
Required Return
$201
$474
$57
c) The forward P/E Ratio.
d) Present Value of Growth Opportunities (PVGO).
$138
$480
14%
3. Using the income statement and balance sheet above. Calculate the following:
a) The price using the DDM.
b) The leading P/E Ratio.
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