The current price of Parador Industries stock is $82 per share. Current earnings per share are $3.50, the earnings growth rate is 3 percent, and Parador does not pay a dividend. The expected return on Parador stock is 17 percent. a. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Eaming 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
The current price of Parador Industries stock is $82 per share. Current earnings per share are $3.50, the earnings growth rate is 3 percent, and Parador does not pay a dividend. The expected return on Parador stock is 17 percent. a. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Eaming 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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Ef 234.
![The current price of Parador Industries stock is $82 per share. Current earnings per share are $3.50, the earnings growth rate is 3
percent, and Parador does not pay a dividend. The expected return on Parador stock is 17 percent.
6. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.)
Eaming 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53138e5b-2d55-4cf9-9daf-54626cfef786%2Feec49a61-0f44-4522-ae09-b93fae052bf3%2Fki10jei_processed.png&w=3840&q=75)
Transcribed Image Text:The current price of Parador Industries stock is $82 per share. Current earnings per share are $3.50, the earnings growth rate is 3
percent, and Parador does not pay a dividend. The expected return on Parador stock is 17 percent.
6. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.)
Eaming 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
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