Q9 |
Answer : A higher |
Q10 |
Answer : Start-up phase |
Q11 |
Answer : Earnings retention ratio will increase |
Q12 |
Answer : Liquidation value per share |
If you have any doubt then please ask |
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questions 9-12 please 9. If a firm increases its plowback ratio, this will probably result in...
9. What is the plowback ratio for a firm that has earnings per share of $20 and pays out $5 per share as dividend payment? A) 75% B) 50% C) 25% D) 15% 10. What is the risk premium for a stock with Beta of 1.5 and a market-risk premium of 20%?
9. What is the plowback ratio for a firm that has earnings per share of $20 and pays out $5 per share as dividend payment? A) 75% B) 50% C) 25% D) 15% (A 0 C L(0 10. What is the risk premium for a stock with Beta of 1.5 and a market-risk premium of 20%?
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 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 = ?
For a firm that expects earnings next year of $10.00 per share, has a plowback ratio of 35%, a return on equity of 20%, and a required return of 15%. a. Calculate the sustainable growth rate of the firm (Already calculated to be 7%) b. Calculate the current stock price and next year's expected stock price assuming that the growth rate is constant. (Already calculated current to be $81.25) c. Redo the calculation if the growth of the company's dividends...
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...
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 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...
2. A firm borrowed more money over the year and did not issue stock. The plowback ratio is 0. Profit margin and total asset turnover remained fixed. Which of the following statements must be true? a. Equity increases b. ROA increases c. ROE increases d. None of the above 3. Based on the principles of diversification, which of the following statements is true? a. Adding additional stocks to your portfolio will reduce unsystematic risk b. Adding additional stocks to your...
Assume that a firm distributes all of its carnings as dividends. Which of the following is indicated by a price-carnings (P/E) ratio of 10? a. It would take 10 years for an investor to recover his or her initial investment. b. The firm will pay a dividend of $10 per share. The value of the stock will be 10 times the initial investment at the time of maturity d. The stock's value will increase by 10 percent every year. e....