The Boeing Company (BA) has a trailing P/E of 24.0 and a forward P/E of 18.0. The current stock price is $135.00. BA’s required rate of return is 9.0%. What is BA’s present value of growth opportunities (PVGO)?
A. |
$51.67 |
|
B. |
$72.50 |
|
C. |
$12.15 |
|
D. |
$22.50 |
The Boeing Company (BA) has a trailing P/E of 24.0 and a forward P/E of 18.0....
. Reliable Electric Corp. in Austria has a trailing P/E of 14. Analysts predict that Rliable's dividends will continue to grow at its recent rate of 4.5% per year into the indefinite future. Given a current dividend and EPS of A$0.7 per share and A$2.00 per share, respectively, and a required rate of return on equity of 8%. (12 points) a) What is the intrinsic value of Reliable using GGM? (5 points) b) Based on a trailing P/E of 14,...
Web Cites Research projects a rate of return of 15% on new projects. Management plans to plow back 20% of all earnings into the firm. Earnings this year will be $9 per share, and investors expect a rate of return of 12% on stocks facing the same risks as Web Cites. a. What is the sustainable growth rate? b. What is the stock price? c. What is the present value of growth opportunities (PVGO)? d. What is the P/E ratio?...
Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.40. Its projected earnings are $3 per share. Investors expect a 14% rate of return on the stock. a. At what price and P/E ratio would you expect the firm to sell? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price P/E ratio b. What is...
Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back 30% of all earnings into the firm. Earnings this year will be $3 per share, and investors expect a 12% rate of return on stocks facing the same risks as Web Cites. a. What is the sustainable growth rate? (Round your answer to 2 decimal places.) Sustainable growth rate % b. What is the stock price? (Do not round intermediate calculations. Round...
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.25. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $3 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2...
Question 24 Determine the present value of growth opportunities for a company with a leading EPS of $1.65, a required rate of return of 8 percent, and a current stock price of $50. (Round answer to 2 decimal places, e.g. 15.61.) Present value of growth opportunities $
Even Better Products has come out with an even better product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.30. Its earnings this year will be $2 per share. Investors expect a 12% rate of return on the stock. a. At what price and P/E ratio would you expect the firm to sell? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price P/E ratio b. What...
Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 30%, and it will maintain a plowback ratio of 0.30. Its projected earnings are $2 per share. Investors expect a 16% rate of return on the stock. a. At what price and P/E ratio would you expect the firm to sell? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price $ P/E ratio b. What...
The market consensus is that Analog Electronic Corporation has an ROE = 13%, a beta of 1.80, and plans to maintain indefinitely its traditional plowback ratio of 3/4. This year's earnings were $3.10 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 5% return a. Find the price at which Analog stock should sell (Do not round intermediate calculations. Round your answer to 2 decimal...
The market consensus is that Analog Electronic Corporation has an ROE = 13%, a beta of 2.15, and plans to maintain indefinitely its traditional plowback ratio of 1/4. This year's earnings were $3.70 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal...