Homework Answers
P/E ratio is equal to=stock price/EPS
stock price=(1.38*21.3)
which is equal to
=$29.394
Add Answer to:
Example 5: Suppose furniture manufacturer Herman Miller, Inc., has an earnings per share of $1.38. If...
Suppose Rocky Brands has earnings per share of $2.31 and EBITDA of $30.4 million. The firm...
Suppose Rocky Brands has earnings per share of $2.31 and EBITDA of $30.4 million. The firm also has 4.8 million shares outstanding and debt of $115 million (net of cash). You believe Deckers Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Deckers has no debt. If Deckers has a P/E of 13.1 and an enterprise value to EBITDA multiple of 7.1, estimate the value of Rocky Brands stock using both multiples. Which estimate is...
Suppose Rocky Brands has earnings per share of $2.17 and EBITDA of $29.9 million. The firm...
Suppose Rocky Brands has earnings per share of $2.17 and EBITDA of $29.9 million. The firm also has 5.8 million shares outstanding and debt of $140 million (net of cash). You believe Deckers Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Deckers has no debt. If Deckers has a P/E of 13.5 and an enterprise value to EBITDA multiple of 7.9, estimate the value of Rocky Brands stock using both multiples. Which estimate is...
Suppose Rocky Brands has earnings per share of $2.46 and EBITDA of $29.9 million. The firm...
Suppose Rocky Brands has earnings per share of $2.46 and EBITDA of $29.9 million. The firm also has 5.25 million shares outstanding and debt of $135 million (net of cash). You believe Deckers Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Deckers has no debt. If Deckers has a P/E of 13.2 and an enterprise value to EBITDA multiple of 7.2, estimate the value of Rocky Brands stock using both multiples. Which estimate is...
You are asked to value Sunshine Inc. using the relative valuation method. Sunshine Inc.'s earnings forecast...
You are asked to value Sunshine Inc. using the relative
valuation method. Sunshine Inc.'s earnings forecast for next year
(EPS (next year)) is $2.44. The valuation and earnings of
comparable companies are provided below. What is your estimate for
the company's stock price? Round to one decimal place. [Hint:
Compute the corresponding valuation multiple of the comparables and
take simple average across the three comparable companies. Then
apply this average multiple to Sunshine Inc.] answerable question
reference
Sara Inc's most recent earnings per share were $2.00. Sara has a consistent policy of paying...
Sara Inc's most recent earnings per share were $2.00. Sara has a consistent policy of paying out 30% of its earnings as dividend. Researchers say that Sara earnings will grow at a constant rate of 10% over the next 5 years, and then will grow at 5% after this. The cost of capital is 9%. a. using the norma two-stage dividend growth model( use gordon growth to find terminal value) find the value of the stock b. using the trailing...
part a Suppose a company has a stock price of $42, earnings of $2.12 per share...
part a Suppose a company has a stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over the following year, and average earnings growth forecast of 12.5% per year for the next five years. What is this stock's Trailing P/E ratio, rounded to one decimal place? part b Same company as above: Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over...
1. A firm s _____ added to its _____ equals 1.0. a. earnings per share, PE ratio...
1. A firm s _____ added to its _____ equals 1.0. a. earnings per share, PE ratio b. ROA, ROE c. growth rate, net income d. payout ratio, plowback ratio 2. Amuzon Corp. is currently selling for $30/share and recently reported annual earnings of $2 million, 1 million shares outstanding, and forecasted earnings/share of $2.50 next year. Amuzon Corp.'s trailing P/E ratio is: a. 15 b. 12 c. 30 d. 6.67% 3. If the PE of a broad market index is below the historical average PE, an investor might...
Suppose a company has a stock price of $42, earnings of $2.12 per share during the...
Suppose a company has a stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of $2.84 over the following year, and average earnings growth forecast of 12.5% per year for the next five years. What is this stock's Trailing P/E ratio, rounded to one decimal place?
You are consider buying GM stock. Their earnings per share last year were $4.75 and their...
You are consider buying GM stock. Their earnings per share last year were $4.75 and their P/E ratio is currently 7. You believe that Ford is a good comparable for GM. Fords earning per share were 2.20 and their P/E ratio is currently 12. Using Ford as a comparable how much is GM worth? (round to 2 decimal places) Group of answer choices $26.40 $15.40 $57 $33.25
Suppose that a firm’s recent earnings per share and dividend per share are $2.10 and $1.10,...
Suppose that a firm’s recent earnings per share and dividend per share are $2.10 and $1.10, respectively. Both are expected to grow at 9 percent. However, the firm’s current P/E ratio of 20 seems high for this growth rate. The P/E ratio is expected to fall to 16 within five years. Compute the dividends over the next five years. (Do not round intermediate calculations. Round your final answer to 3 decimal places.) Dividends Years First year $ Second year $...
Suppose Rocky Brands has earnings per share of $2.17 and EBITDA of $29.9 million. The firm also has 5.8 million shares outstanding and debt of $140 million (net of cash). You believe Deckers Outdoor Corporation is comparable to Rocky Brands in terms of its underlying business, but Deckers has no debt. If Deckers has a P/E of 13.5 and an enterprise value to EBITDA multiple of 7.9, estimate the value of Rocky Brands stock using both multiples. Which estimate is...
You are asked to value Sunshine Inc. using the relative
valuation method. Sunshine Inc.'s earnings forecast for next year
(EPS (next year)) is $2.44. The valuation and earnings of
comparable companies are provided below. What is your estimate for
the company's stock price? Round to one decimal place. [Hint:
Compute the corresponding valuation multiple of the comparables and
take simple average across the three comparable companies. Then
apply this average multiple to Sunshine Inc.] answerable question
reference
Most questions answered within 3 hours.
-
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 18 minutes ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 41 minutes ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 59 minutes ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 1 hour ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 1 hour ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 1 hour ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 5 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 5 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 6 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 6 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 6 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 6 hours ago