P/E ratio = Price/Earnings
= 75/1.56
= 48.07
= 48
hence the answer is 48 ,
choose A)
19) Home Depot stock is currently selling for $75 per share. Next year's dividend is expected...
Company A's common stock is selling for $75 per share, and currently pays a dividend of$4.75 per share. The share's earnings and dividends are expected to grow at 5% into the foreseeable future. Based on this information, the cost of internal equity financing is: Group of answer choices 13.20% 11.71% 14.45% 12.71%
Spencer Supplies' stock is currently selling for $60 a share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $2.20. If investors require a 9% return, what rate of growth must be expected for Spencer? Round your answer to two decimal places. ____% If Spencer reinvests earnings in projects with average returns equal to the stock's expected rate of return, then what will be next year's EPS? (Hint: gL = ROE...
Spencer Supplies' stock is currently selling for $60 a share. The firm is expected to earn $5.70 per share this year and to pay a year-end dividend of $3.90. a. If investors require a 9.5% return, what rate of growth must be expected for Spencer? Round your answer to two decimal places. b. If Spencer reinvests earnings in projects with average returns equal to the stock's expected rate of return, then what will be next year's EPS? (Hint: gL =...
A stock is selling for $40 per share currently. The next dividend will be $1 per share, and will grow at 12% per year forever. What is the rate of return required by investors? Answer: 14.5%
The stock of North American Dandruff Company is currently selling at $80 per share. The firm pays a dividend of $2.50 per share. a. What is the dividend yield? b. If the firm has a payout rate of 50 percent, what is the firms P/E ratio? Solution Problem 18-10 Instructions Enter formulas to calculate the requirements of this problem. Information Stock price$80 Dividend$2.50 a. What is the annual dividend yield?FORMULA in EXCEL b. If the firm has a payout rate...
Mexican Motors stock sells for 200 pesos per share and next year's dividend is 8.5 pesos. Security analysts are forecasting earnings growth of 7.5% per year for the next five years. a) Assume that earnings and dividends are expected to grow at 7.5% in perpetuity. What rate of return are investors expecting? b) Mexican Motors has generally earned about 12% on book equity (ROE = 0.12) and paid out 50% of earnings as dividends. Suppose it maintains the same ROE...
XYZ stock currently sells for $50 per share. The next expected annual dividend is $2, and the growth rate is 6%. What is the expected rate of return on this stock? If the required rate of return on this stock were 12%, what would the stock price be, and what would the dividend yield be?
A stock currently selling for $105 with estimated earnings per share of $5.25 would have a P/E ratio of
eBook Sidman Products's common stock currently sells for $48 a share. The firm is expected to earn $4.32 per share this year and to pay a year-end dividend of $2.80, and it finances only with common equity. a. If investors require a 9% return, what is the expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. % b. If Sidman reinvests retained earnings in projects whose average return is equal to the stock's expected...
Umber, Inc. just paid a dividend of $2.00 per share. And next year's dividend will be $2.06. What is Umber's plowback ratio if it has a ROE of 12 20%? (Round your answer to 2 decimal places.) Plowback ratio PS1 of 36 Next > e to search