The market capitalization rate on the stock of Aberdeen Wholesale Company is 14%. Its expected ROE is 15%, and its expected EPS is $6. If the firm's plowback ratio is 60%. Calculate its P/E ratio.

Q: Smathers corp. stock has a beta of .90.  The market risk premium is 7.30 percent and the risk-free…

A: The capital Asset pricing model is a risk adjusted return model only on the basis of systematic risk…

Q: The market capitalization rate for Admiral Motors Company is 7%. Its expected ROE is 12% and its…

A: market capitalization rate = r = 7%Return on Equity = ROE = 12%Earning Per Share = EPS = $6plowback…

Q: Everrest Inc.'s stock has a 44% chance of producing a 16.75% return, a 25% chance of producing a…

A: Expected return is that amount which is earned by the investor from his investment. It is calculate…

Q: The monthly demand of you firm equals you I'd 26166 .The safety stocks level equals 1000 and lead…

A: Re-Order Point = Expected demand during lead time + Safety stock Or Re-Order Point = (Daily demand x…

Q: The common stock of Pittsburgh Steel Products has a beta of 1.2 and a standard deviation of 9.75…

A: Risk-free rate = 3%Market return = 12.2%Beta = 1.2Standard deviation = 9.75%

Q: You have assigned the following values to these three firms: Upcoming Dividend Growth $1.80 1.37…

A: The required rate of return refers to the minimum return on investment that an investor expects to…

Q: Over the next year, the stock market will either be a bull market or a bear market. The probability…

A: expected return of a stock with different probability of return is: Expected return =…

Q: Fremont Enterprises has an expected return of 16% and Laurelhurst News has an expected return of…

A: The weighted return of different securities in the portfolio is termed as expected portfolio return.…

Q: A firm that is currently unlevered has WACC = rS = 10%/year. This company plans to do a…

A: The objective of the question is to calculate the cost of equity (rS) after the firm's…

Q: The risk-free rate of interest is 2.1% and the market return is 9%. Howard Corporation has a beta of…

A: Risk free rate (Rf) = 0.021 Market return (Rm) = 0.09 Beta (b) = 1.75 Required return = ?

Q: The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 10% and its…

A: Market capitalization rate = 8%Expected ROE = 10%Expected EPS = $5Plowback ratio = 60%

Q: Quantitative Problem: Barton Industries expects next year's annual dividend, D1, to be $2.50 and it…

A: Flotation cost is the cost required to raise money from the market and is the cost of…

Q: A company stock has a 50% chance of producing a 30% return, a 25% chance of producing a 12% return,…

A: 50% Chance of 30% Return25% Chance of 12% Return25% Chance of -18% ReturnExpected Return =…

Q: ou want to check if GRBH stock is fairly priced in the markets by using the fundamental analysis.…

A: given, EPS1=$5EPS2=$7dividend payout = 0.2PE =8r=10%

Q: The market capitalization rate on the stock of Aberdeen Wholesale Company is 7%. Its expected ROE is…

A: The price-to-earnings ratio (P/E ratio) is the ratio that is used for valuing a company. It measures…

Q: The market capitalization rate for Admiral Motors Company is 10%. Its expected ROE is 15% and its…

A: market capitalization rate = r = 10%Return on Equity = ROE = 15%Earning Per Share = EPS = $7plowback…

Q: Rosie's Grill has a beta of 1.2, a stock price of $26 and an expected annual dividend of $1.30 a…

A: Equity is an important element of capital in any company. As an element of capital equity has its…

Q: The market capitalization rate for Admiral Motors Company is 6%. Its expected ROE is 10% and its…

A: This question is based on financial ratios and its use and application to determine valuation…

Q: You forecast to have a ROE of 14%, and dividend payout ratio of 12%. Currently the company has a…

A: PEG ratio is the ratio of price by earning divided by growth of earning . formula: PEG=P/E…

Q: Over the next year, the stock market will either be a bull market or a bear market. The probability…

A: The Sharpe ratio of a company is used by investors to measure its performance. It measures the…

Q: A company will produce $3.00 in earnings per share at the end of the year. Reinvested earnings can…

A: We need to use formula below to calculate PVGO of the company. The equation is whereD1= next…

Q: at is the expected return of your portfolic

A: Expected return of the portfolio equals the summation of the individual expected returns multiplied…

Q: Currently, a firm has an EPS of $2.13 and a benchmark PE of 18.64. Earnings are expected to grow by…

A: Data given: EPS = $2.13 PE of 18.64   Required: Estimated current stock price

Q: Over the next year, the stock market will either be a bull market or a bear market. The probability…

A: Volatility or standard deviation of Meguire and company shares with different probabilities at each…

Q: Which of the following is the better option for an average firm? A. A debt ratio = 30% and a timed…

A: Debt RatioThis ratio indicates the percentage of the company's assets financed by debt. A higher…

Q: The risk-free rate of return (r) is 2% and the expected market rate of return (rm) is 10%. The…

A: In this we have to calculate expected return using CAPM model.