encesThe current price of Parador Industries stock is $71 per share. Current earnings per share are $4.60, the earnings growth rate is 4percent, and Parador does not pay a dividend. The expected return on Parador stock is 22 percent.a. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.)Earning per shareb. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.)P/E ratio

Current Earnings Per Share (EPS) = $4.60Future EPS = Current EPS × (1 + g)nHere,g is the constant…

tes The current price of Parador Industries stock is $71 per share. Current earnings per share are $4.60, the earnings growth rate is 4 percent, and Parador does not pay a dividend. The expected return on Parador stock is 22 percent. 6. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Earning per share b. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio

tes The current price of Parador Industries stock is $71 per share. Current earnings per share are $4.60, the earnings growth rate is 4 percent, and Parador does not pay a dividend. The expected return on Parador stock is 22 percent. 6. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Earning per share b. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 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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Dee's made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be $1.87 a share. Secondly, all dividends after that will decrease by 1.91 percent annually. What is the value of this stock at a discount rate of 10.0 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Flounder Clothiers Ltd.'s current dividend is $3.70. Dividends are expected to grow by 7 percent for years 1 to 3, 5 percent for years 4 to 7, and 1 percent thereafter. The required rate of return on the stock is 10 percent. What is the current stock price for Flounder? (Round intermediate calculations to 4 decimal places, e.g. 45.1771 and final answer to 2 decimal places, e.g. 45.17.) Stock price $
Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $4.70 dividend every year, in perpetuity. If this issue currently sells for $79.95 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The current dividend yield on CJ's common stock is 2.66 percent. The company just paid an annual dividend of $1.56 and announced plans to pay $1.70 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $2.50 per share, and the current price of its common stock is $50 per share. The expected growth rate is 8 percent. Compute the cost of retained earnings (Ke). Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. If a $3 flotation cost is involved, compute the cost of new common stock (Kn). Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.
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S 1 4 3 S 2 5. Regular Dividends The balance sheet for Fourth Corp. is shown here in terms. There are 12,000 shares of stock outstanding. Market Value Balance Sheet $ 58,000 445,000 $503,000 Cash Fixed assets Total: Equity Total $503,000 $503,000 The company has declared a dividend of $1.90 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? Dinurobase In the previous problem, suppose the company has announced it is What affect will this transaction have on the
Suppose a stock had an initial price of $80 per share, paid a dividend of $.60 per share during the year, and had an ending share price of $88. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Are bio technology company stock is currently selling for $48.35 per share. The earnings per share are $4.14 and the dividend is $1.80. A-what is the current yield of stock as a percent round your answer to the nearest 10th of a percent? B-what is the price earnings ratio round your answer to the nearest whole number?
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $50. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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