Stock InfoShares OutstandingStock Pricebetarisk free rateMarket ReturnBook ValueWhat is the market valu of equity?$3,000$2,000$1,500$1,000AmountTable 6100$101.23%9%$900Bond InfoFace valueCouponPriceNPaymentsTaxAmount$1,0006%$865.0010Annual0.35

The market value of equity refers to the total worth of a company's common shares, which are traded…

Stock Info Shares Outstanding Stock Price beta risk free rate Market Return Book Value What is the market value of equity? O $3,000 O $2,000 O $1,500 O $1,000 Amount Table 6 100 $10 1.2 3% 9% $900 Bond Info Face value Coupon Price N Payments Tax Amount $1,000 6% $865.00 10 Annual 0.35

Stock Info Shares Outstanding Stock Price beta risk free rate Market Return Book Value What is the market value of equity? O $3,000 O $2,000 O $1,500 O $1,000 Amount Table 6 100 $10 1.2 3% 9% $900 Bond Info Face value Coupon Price N Payments Tax Amount $1,000 6% $865.00 10 Annual 0.35

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

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Question

Stock Info
Shares Outstanding
Stock Price
beta
risk free rate
Market Return
Book Value
What is the market valu of equity?
$3,000
$2,000
$1,500
$1,000
Amount
Table 6
100
$10
1.2
3%
9%
$900
Bond Info
Face value
Coupon
Price
N
Payments
Tax
Amount
$1,000
6%
$865.00
10
Annual
0.35

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B20 x✓ fx A B 5 Earnings 6 4 Shares Outstanding Dividends, Per Share (Just Paid) 7 Return on Equity 8 Beta 9 10 Market Data 11 Market Return 12 Risk-Free Rate 13 25,000,000 $50,000,000 $1.25 0.15 1.35 Expected Return 0.12 0.03 14 Required: 15 16 Using the information in the tables above, complete the necessary steps to calculate the P/E ratio and the PEG ratio. 17 (Use cells A4 to B12 from the given information to complete this question.) 18 19 The M. Smith and Family Corporation 20 Capitalization Rate 21 Earnings Per Share 22 Plowback Rate 23 Sustainable Growth Rate 24 Price 25 P/E Ratio 26 Sustainable Growth Rate (as Percentage, use for PEG Calculation) 27 PEG Ratio 28 29 Calculations $2.00 0.375 0.056 5.625
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