The market capitalization rate on the stock of Aberdeen Wholesale Company is 12%. Its expected ROE is 14%, and its expected EPS is $3. If the firm's plow back ratio is 50%, its P/E ratio will be a. 6.67. b. 16.67. c. 20.00. d. 10.00.
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- The market capitalization rate on the stock of Aberdeen Wholesale Company is 7%. Its expected ROE is 8%, and its expected EPS is $3. If the firm's plowback ratio is 75%, its P/E ratio will be Multiple Choice 25.00 29.00 సె 100.00 20.00The market capitalization rate on the stock of Aberdeen Wholesale Company is 7%. Its expected ROE is 8%, and its expected EPS is $3. If the firm's plowback ratio is 75%, its P/E ratio will be Multiple Choice O O O O 29.00 100.00 25.00 20.00You forecast to have a ROE of 14%, and dividend payout ratio of 12%. Currently the company has a price of $30 and $7 earnings per share. What is the PEG ratio based on market price?
- Yharnam Co. is expected to pay a dividend of D1 = $1.40 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.2, the Market Risk Premium is 6.25%, and the risk-free rate is 3.90%. What is the company's current stock price? Group of answer choices 24.06 18.59 28.00 22.40 21.88Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15. the market risk premium is 5.50%, and the risk-free rate is 4.00% What is Dyer's current stock price? a. $28.90 b. $29.62 C. $31.12 d. $30.36 e. $31.90A stock sells for a price of $60. Next year's dividend will be $3 per share. If the ROE ("project return") on reinvested funds is 10% and the company has a payout ratio of 40%, what must be the market rate (r)?
- Opt-In Inc. has an expected rate of return on equity next year, ROE₁, equal to 10% and a dividend payout ratio next year, DPY₁, equal to 50%. Opt-In Inc.'s equity beta is equal to 1 and the company is expected to pay dividend per share next year, DPS₁, equal to $1. The long-run risk-free rate is equal to 5% while the stock market risk premium is equal to 5%. If Opt-In Inc. double their dividend payout ratio next year to 100% then their intrinsic equity value per share will be equal to: $40.00 $30.00 $10.00 $20.00The Farmer Co. has a payout ratio of 65% and a return on equity (ROE) of 16% (assume that this is expected ROE for the upcoming year). What will be the appropriate price-to-book value (PBV) based on return differential if the expected growth rate in dividends is 5.6% and the required rate of return is 13% ?The market capitalization rate for Admiral Motors Company is 12%. Its expected ROE is 9%. If the firm's plowback ratio is 50%, what will be its P/E ratio? Round your answer to one decimal place.
- A financial analyst estimates that the current risk-free rate for NN company is 6.25 percent, the market risk premium is 5 percent, and NN's beta is 1.75. The current earnings per share (EPS0) is RM2.50. The company has a 40 percent payout ratio. The analyst estimates that the company's dividend will grow at a rate of 25 percent this year, 20 percent next year, and 15 percent the following year. After three years the dividend is expected to grow at a constant rate of 7 percent a year. The company is expected to maintain its current payout ratio. The analyst believes that the stock is fairly priced. a) What is the required rate of return for the stock? b) What are the dividends for 4 years? c) What is the stock price at the end of year 3?The stock of North American Danduff Company is selling at $80 per share. The firm pays a divdend of $2.50 per share. a) What is the dividend yield? b) If the firm has a payout rate of 50% , what is the firm's P/E ratio?Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the band - yield - plus - nisk - premium approach, and the DCF model. Burton expects next year's annual dividend, D₁, to be $1.70 and it expects dividends to grow at a constant rate g = 5,4% The firm's current common stock price, Po, is $20.00. The current risk-free rate, FRF, = 4.9% the market risk premium, RPM = 6.3%, and the firm's stuck has a current beta, b, = 1.40. Assume that the firm's cast of debt, rd is 10.78%. The firm uses a 3.3% risk premium when arriving at a ballpark estimate of its cost of equity using the bund-vield-risk-premium approach. What is the firm's cost of equity using each of these three approaches? CAPM cost of equity. Band yield plus visle premium: DCF cost of equity: % 1. %