Please provide correct answer these accounting question The current price of Parador Industries stock is $57 per share. Current sales pershare are $22.2, the sales growth rate is 8 percent, and Parador does not paya dividend. The expected return on Parador stock is 11 percent. The currentprice of Parador Industries stock is $57 per share. Current sales per share are$22.2, the sales growth rate is 8 percent, and Parador does not pay a dividend.The expected return on Parador stock is 11 percent.1. Calculate the sales per share one-year ahead. (Round your answer to 2decimal places. Omit the sign in your response.)2. Calculate the P/S ratio one-year ahead. (Do not round intermediatecalculations. Round your answer to 2 decimal places.)

Step 1: Define Price-to-sales ratioAlso known as the P/S ratio indicates the market price per share…

Answered: The current price of Parador Industries…

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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The current price of PTO Industries stock is $94.58 per share. Current earnings per share are $4.68, the earnings growth rate is 4 percent, and PTO does not pay a dividend. The expected return on PTO stock is 13] percent. What one-year ahead P/E ratio is consistent with PTO's expected return and earnings growth rate? Answer to two decimal places.
Consider the case of Cute Camel Woodcraft Company: Cute Camel Woodcraft Company pays an annual dividend rate of 9.80% on its preferred stock that currently returns 13.13% and has a par value of $100.00 per share. The preferred stock issue does not mature, and computes its annual dividend as the product of its dividend rate and its par value. What is the current market value of Cute Camel's preferred stock? O $103.00 per share O $74.64 per share O $65.68 per share $80.61 per share Suppose that due to high inflation, interest rates rise and pull the preferred dividend yield to 19.04%. Then the value of Cute Camel's preferred stock will to This is because interest rates (and security returns) and security values are related.
Hank Corp.'s common stock currently sells for $53 per share. The most recent dividend (Do) was $2.48, and the expected growth rate in dividends per year is 7%. The cost of common equity, Re, is ____%. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process.
Decker Incorporated's common stock currently trades at $45/share and recently paid a $3 dividend. The company plans to reduce dividends by a constant 2% rate in order to reinvest in itself for the foreseeable future. All else being equal, what effect with this change have on the value of Decker's common stock? It will increase It will decrease. It will be unaffected by the change. Cannot be determined.
Mayo Inc.'s perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual dividend. What is the company's cost of preferred stock for use in calculating the WACC? The question does not have a flotation cost. How would I solve the problem with this information?
Dixon Corp has announced a per-share dividend of $5.25 for the year just ended. The company’s earnings and dividends per share are expected to grow at a steady rate of 4.50% for the foreseeable future. Each share of the company’s common stock is currently trading for $94. Estimate Dixon’s marginal cost of common equity. Dixon faces a marginal tax rate of 30%. 5.84% 10.34% 7.24% 13.54% 9.79%
Wells fargo is paying a dividend of $1.09 per share today. There are 225,000 shares outstanding with a market price of $31.17 per share prior to the dividend payment. Ignore taxes. Before the dividend, the company had earnings per share of $2.11. As a result of this dividend, the: A.) price-earnings ratio will be 14.26. B.) Earnings per share will increase to $3.20. C.) total value of the company will not change D.) retained earnings will increase by $245,250 E.) retained earnings will decrease by $225,000.
Suppese Compoo Systems pays no dividends but spent $4.87 belion on share repurchases last year. If Compco's equily cost of capital is 11.7% , and if the amount spent on repurchases is expected to grow by 8.4% por year, estimate Compco's market capitalization. If Compco has 6.6 bulion shares outstanding, to what stock price does this correspond? . Compoois market capitalcation will be 4 bllion (Riound to two decimal places)
Sentry Manufacturing paid a dividend yesterday of $5 per share (D0 = $5). The dividend is expected to grow at a constant rate of 0.076 per year. The price of Sentry Manufacturing's stock today is $34 per share. If Sentry Manufacturing decides to issue new common stock, flotation costs will equal $0.74 per share. Sentry Manufacturing's marginal tax rate is 0.31. Based on the above information, the cost of retained earnings is Instruction: Type your answer as a decimal, and round to three decimal places
Tokyo Steel's common stock currently is seeling for $56 per share. The most recent dividend paid to common stockholders was $2.40, and this dividend is expected to grow at a rate of 5 percent for as long as Tokyo is in business. If it issues new common stock, Tokyo will incur flotation costs equal to 10.0 percent. (a) What is the company's cost of retained earnings? (b) What is its cost of new common equity?

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