Homework Answers
Solution:
Amazon: Share price as on March 5, 2019 is 1692.43
Dividend yield: 0 %. Amazon doesn't pay any dividend
P/E ratio : PE ratio is 84.04 as on March 5, 2019
Since the PE ratio is more than 25 so the stock is overvalued
Coca cola:
Share price as on March 05, 2019 is 45.60
P/E ratio is 30.40 as on March 05, 2019
Dividend yield is 3.53%
Since the PE is higher than 25 so it is overvalued
But as compared to Amazon , Coca cola is less overvalued so we will invest in coca cola
Amount = 25000
Share price = 45.60
No of share purchased = 25000/45.60 = 548.24 share
Add Answer to:
Looking for 1) P/E ratio 2) Dividend yield 3)explanation either overvalued or undervalued
EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Kotsis...
EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Kotsis Industries at the end of 2017 appears as follows: 89%, $100 par, cumulative preferred stock, 200,000 shares authorized, 50,000 shares issued and outstanding $5,000,000 Additional paid in capital on preferred 2.500,000 Common stock, $5 par, 500,000 shares authorized, 400,000 shares 2,000,000 issued and outstanding Additional paid in capital on common 18,000,000 Retained earnings 37.500.000 Total stockholders' equity $65,000,000 Net income for the year was...
AP11-18B (P/E, dividend payout, dividend yield and ROE) OCloud Corporation's suite of software products and services...
AP11-18B (P/E, dividend payout, dividend yield and ROE) OCloud Corporation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2020 and 2019 comparative income statements and statement of financial position. The market price of OCloud's common shares was $40.93 and $38.20 on June 30, 2020, and June 30, 2019, respectively. OCloud declared dividends per common share of $0.477 and $0.415 for 2020 and 2019, respectively OCLOUD CORPORATION...
1. Which statement is incorrect? a. Dividend yield measures the rate of return on the market price of a share. b. The di...
1. Which statement is incorrect? a. Dividend yield measures the rate of return on the market price of a share. b. The dividend payout ratio measures the percentage of profit paid out in dividends to ordinary shareholders. c. Dividend per share is the ratio to use when comparing income from shares with income from alternative investments. d. Dividend yield is an important ratio for an investor who is acquiring shares mainly for income. 2. A profit ratio for a retailer...
The Price is Right! Utilizing 1 of these public companies—Target, Coke, Pepsi, Wal-Mart, or J. P...
The Price is Right! Utilizing 1 of these public companies—Target, Coke, Pepsi, Wal-Mart, or J. P. Morgan—determine the right price for that company’s stock in the following 5 easy steps: Visit this Web site. Type in your selected company’s name in the Quote Search box, and select your company's stock symbol. Jot down the current stock price. Select the Analysis tab, and find the Analyst Recommendation box. Jot down the stock’s Earnings Per Share (EPS) Estimate. Select the Price Ratios...
(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to valuation,...
(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions: • the investor's required rate of return is 13 percent, • the expected level of earnings at the end of this year (E1) is $4, • the firm follows a policy of retaining 30 percent of its earnings, • the return on equity (ROE) is 15 percent, and • similar shares of...
Question 9: (10 points). (Relative valuation of common stock) Using the P/E ratio approach to valuation,...
Question 9: (10 points). (Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions .the investor's required rate of return is 13 percent, the expected level of earnings at the end of this year (E1) is $8, the firm follows a policy of retaining 40 percent of its earnings, the return on equity (ROE) is 15 percent, and similar shares of stock sell at multiples of...
2. Given the following table:+ Net high low Stock Ticker Div % P/E 00s High Low...
2. Given the following table:+ Net high low Stock Ticker Div % P/E 00s High Low Close chg 2.5 3831 42.00 39.51 4150-1.90 162 6.09 5.90 6.09 +0.12 52W 52W Yield Vol 45.39 19.75 ResMed RMD 1.63 3.55 Revion A REV 7 25 55.13 RioTinto RTP 2.30 3.2 31.31 16.63 RitchieBr RBA 844 1.75 RiteAld RAD 38.63 18.81 RobtHalfRH 168 72.75 7184 72.74 +0.0 20.9 15 24.49 24.29 24.49-0.01 31028 450420 431 +021 26.5 6517 27.15 26.50 26.50 +0.14 5125...
Problem 1 If a stock's P/E ratio is 12 at a time when earnings are $3...
Problem 1 If a stock's P/E ratio is 12 at a time when earnings are $3 per year, what is the stock's current price? Problem 2 What should be the price for a common stock paying $6.00 annually in dividends if the growth rate is zero and the discount rate is 8%? er e Problem 3 What price was quoted to an investor who paid $982.50 for a $1,000 par value bond? as quoted to Problem 4 What is the...
1) earninggs per share for this year and last year 2) dividend yield ratio in %...
1) earninggs per share for this year and last year
2) dividend yield ratio in % this and last year
3) dividend payout ratio in % this and last year
4) price earning ratio this and last year
5) book value per share of common stock this and last
year
Comparative Balance Sheet This Year Last Year $ 960,000 2,700,000 3,600,000 • 260,000 7,520,000 9,520,000 $17,040,000 $ 1,200,000 300,000 1,800,000 2,000,000 200,000 5,500,000 9 ,050,000 $14,550,000 Assets Current assets: Cash...
1. 2. Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the...
1.
2.
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $10 par value (no change $1,400,000 during the year) Preferred $10 stock, $200 par (no change 4.000.000 during the year) The net income was $452,000 and the declared dividends on the common stock were $35,000 for the current year. The market price of the common stock is $14.40 per...
EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Kotsis Industries at the end of 2017 appears as follows: 89%, $100 par, cumulative preferred stock, 200,000 shares authorized, 50,000 shares issued and outstanding $5,000,000 Additional paid in capital on preferred 2.500,000 Common stock, $5 par, 500,000 shares authorized, 400,000 shares 2,000,000 issued and outstanding Additional paid in capital on common 18,000,000 Retained earnings 37.500.000 Total stockholders' equity $65,000,000 Net income for the year was...
AP11-18B (P/E, dividend payout, dividend yield and ROE) OCloud Corporation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2020 and 2019 comparative income statements and statement of financial position. The market price of OCloud's common shares was $40.93 and $38.20 on June 30, 2020, and June 30, 2019, respectively. OCloud declared dividends per common share of $0.477 and $0.415 for 2020 and 2019, respectively OCLOUD CORPORATION...
(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions: • the investor's required rate of return is 13 percent, • the expected level of earnings at the end of this year (E1) is $4, • the firm follows a policy of retaining 30 percent of its earnings, • the return on equity (ROE) is 15 percent, and • similar shares of...
Question 9: (10 points). (Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions .the investor's required rate of return is 13 percent, the expected level of earnings at the end of this year (E1) is $8, the firm follows a policy of retaining 40 percent of its earnings, the return on equity (ROE) is 15 percent, and similar shares of stock sell at multiples of...
2. Given the following table:+ Net high low Stock Ticker Div % P/E 00s High Low Close chg 2.5 3831 42.00 39.51 4150-1.90 162 6.09 5.90 6.09 +0.12 52W 52W Yield Vol 45.39 19.75 ResMed RMD 1.63 3.55 Revion A REV 7 25 55.13 RioTinto RTP 2.30 3.2 31.31 16.63 RitchieBr RBA 844 1.75 RiteAld RAD 38.63 18.81 RobtHalfRH 168 72.75 7184 72.74 +0.0 20.9 15 24.49 24.29 24.49-0.01 31028 450420 431 +021 26.5 6517 27.15 26.50 26.50 +0.14 5125...
Problem 1 If a stock's P/E ratio is 12 at a time when earnings are $3 per year, what is the stock's current price? Problem 2 What should be the price for a common stock paying $6.00 annually in dividends if the growth rate is zero and the discount rate is 8%? er e Problem 3 What price was quoted to an investor who paid $982.50 for a $1,000 par value bond? as quoted to Problem 4 What is the...
1) earninggs per share for this year and last year
2) dividend yield ratio in % this and last year
3) dividend payout ratio in % this and last year
4) price earning ratio this and last year
5) book value per share of common stock this and last
year
Comparative Balance Sheet This Year Last Year $ 960,000 2,700,000 3,600,000 • 260,000 7,520,000 9,520,000 $17,040,000 $ 1,200,000 300,000 1,800,000 2,000,000 200,000 5,500,000 9 ,050,000 $14,550,000 Assets Current assets: Cash...
1.
2.
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $10 par value (no change $1,400,000 during the year) Preferred $10 stock, $200 par (no change 4.000.000 during the year) The net income was $452,000 and the declared dividends on the common stock were $35,000 for the current year. The market price of the common stock is $14.40 per...
Most questions answered within 3 hours.
-
A Student takes a sample from a table top in the student lounge
using a sterile...
asked 4 minutes ago -
Give an answer that's easy to understand. Define stack data
structure. Show how the Stack operations...
asked 14 minutes ago -
The following financial information is for Annapolis Corporation
are for the fiscal years ending 2019 &...
asked 3 minutes ago -
Which prezygotic barrier to reproduction results in hybrid
sterility?
Question 11 options:
A)
Habitat isolation
B)...
asked 13 minutes ago -
Potassium hydrogen phthalate is a solid, monoprotic acid
frequently used in the laboratory to standardize strong...
asked 14 minutes ago -
You own a portfolio that has $2709 invested in Stock A and $4387
invested in Stock...
asked 32 minutes ago -
A parameter estimate is said to be statistically significant if
there is sufficient evidence that the...
asked 30 minutes ago -
Based on the following table, calculate the ES, EF, LS, LF and
Slack for each activity...
asked 28 minutes ago -
The Work Breakdown Structure is always created using a phased-in
approach.
True/False
asked 45 minutes ago -
In a thermodynamically sealed container, 30.0 g of 22.0∘ ∘ C
water is mixed with 50.0...
asked 45 minutes ago -
what ate the mechanisms that pseudomonas aeruginosa utilize to
cause disease on skin and in the...
asked 50 minutes ago -
What is the present value of the following? Use Appendix B as an
approximate answer, but...
asked 52 minutes ago