The market requires a return of 10% from XYZ, Inc. The firm plowback 80% of its earnings, and its return on equity and earnings per share are expected to be 12% and $6, respectively.
a. What will be XYZ's growth rate? (Input your answer as a nearest whole percent.)
Growth Rate = ?
b. Calculate XYZ's P/E ratio? (Do not
round intermediate calculations.)
P/E Ratio = ?
Cell reference -
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
The market requires a return of 10% from XYZ, Inc. The firm plowback 80% of its...
The market requires a return of 9% from XYZ, Inc. The firm plowback 50% of its earnings, and its return on equity and earnings per share are expected to be 14% and $7, respectively. a. What will be XYZ's growth rate? (Input your answer as a nearest whole percent.) b. Calculate XYZ's P/E ratio? (Do not round intermediate calculations.)
The market capitalization rate for Admiral Motors Company is 10%. Its expected ROE is 14% and its expected EPS is $7. The firm's plowback ratio is 60%. a. Calculate the growth rate. (Input your answer as a nearest whole percent.) Growth rateſ % | b. What will be its P/E ratio? (Do not round intermediate calculations.) P/E ratio
Stormy Weather has no attractive investment opportunities. Its
return on equity equals the discount rate, which is 10%. Its
expected earnings this year are $4 per share. Complete the
following table. (Do not round intermediate calculations.
Enter the growth rate as a whole percent.):
Plowback Growth Rate Stock Price P/E Ratio Ratios 0 а. b. 0.40 0.80 C.
Castles in the Sand generates a rate of return of 10% on its investments and maintains a plowback ratio of 0.30. Its earnings this year will be $4 per share. Investors expect a rate of return of 8% on the stock. a. Find the price and P/E ratio of the firm. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price P/E ratio b. Find the price and P/E ratio of the firm if the plowback ratio...
Castles in the Sand generates a rate of return of 20% on its investments and maintains a plowback ratio of 30. Its earnings this year will be $4 per share. Investors expect a 12% rate of return on the stock. a. Find the price and P/E ratio of the firm. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price P/E ratio b. Find the price and P/E ratio of the firm if the plowback ratio is...
Castles in the Sand generates a rate of return of 20% on its investments and maintains a plowback ratio of .50. Its earnings this year will be $4 per share. Investors expect a 15% rate of return on the stock. a. Find the price and P/E ratio of the firm. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price $ P/E ratio b. Find the price and P/E ratio of the firm if the plowback...
Castles in the Sand generates a rate of return of 20% on its investments and maintains a plowback ratio of 30. Its earnings this year will be $4 per share. Investors expect a 12% rate of return on the stock. a. Find the price and P/E ratio of the firm. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price PIE ratio b. Find the price and P/E ratio of the firm if the plowback ratio is...
Investors require a 10% return from Sommers, Inc. The company's return on equity is 16%, and expects to have an earnings per share of $6 next year. The company ususally plowback 60% of its earnings for future growth. What is the current value of Sommers' stock? (Do not round intermediate calculations.) Price = ?
questions 9-12 please
9. If a firm increases its plowback ratio, this will probably result in ___ P/E ratio A. A higher B. A lower C. An unchanged D. Insufficient information E. None of the above 10. The price-to-sales ratio is probably most useful for firms in which phase of the industry life cycle? A. Start-up phase B. Consolidation C. Maturity D. Relative decline E. None of the above 11. A firm cuts its dividend payout ratio. As a result,...
Return to question Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 20%. Its expected earnings this year are $2 per share. Complete the following table. (Do not round intermediate calculations. Round growth rate to two decimal places.) 1.2 points Answer is complete but not entirely correct. Stock Plowback Ratios P/E Ratio 0 5 Growth Rate 0 % 4.00 % 12.00 % Price 10 10 11 X $ $ $ 0.40 0.60...