Analysts predicted earnings per share

Assignment Help Financial Management
Reference no: EM131131354

Analysts predicted earnings per share (EPS) for your company to be $0.12 at the close of 2020. How does this compare to actual EPS for 2020? If actual EPS is higher than the analysts’ prediction, what factors contributed to the success? If actual EPS is lower than the prediction, how will you explain the shortfall to your investors? Is there anything you could have done to meet the prediction? Our actual EPS for 2020 is 0.9.

Reference no: EM131131354

Questions Cloud

Computing straight-line and double-balance depreciation : Computing Straight-Line and Double-Declining-Balance Depreciation On January 2, Haskins Company purchases a laser cutting machine for use in fabrication of a part for one of its key products.  Compute depreciation expense for each year of the machine..
What are the terminal cash flows in year five : Five years ago, ABC Company invested $55,638 in a machinery. The investment in net working capital was $9,468 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $16,277. The book value of the machinery..
Company will change to constant dividend policy : BDU Company has set up a new product line in January 2015. The dividend is expected to grow at 8% per year for the next 15 years. Then at 3% thereafter. The required return is 12% and the dividend in the coming year is $3.00. What is the stock price?..
Thinking about expanding its facilities : Sabina Bookstores is thinking about expanding its facilities. In considering the expansion, Sabina's finance staff has obtained the following information; the expansion will require the company to purchase initially (t=0) $5 million of equipment (thi..
Analysts predicted earnings per share : Analysts predicted earnings per share (EPS) for your company to be $0.12 at the close of 2020. How does this compare to actual EPS for 2020? If actual EPS is higher than the analysts’ prediction, what factors contributed to the success? If actual EPS..
What are possible capital components in the WACC equation : What are possible capital components in the WACC equation? What factors in the WACC are under a company’s control ? What factors are affected by the capital markets and interest rates ? What is the relevant risk of a stock, and how is it measured? Ho..
Public in the last five years on an organized exchange : IPO. Select a company that has gone public in the last five years on an organized exchange anywhere in the world. Prepare a typewritten paper, double spaced, no longer than 3 pages plus bibliography listing sources of information (be sure to referenc..
Determine the incremental benefit-cost ratio : A contractor must choose between buying or renting a crane for the duration of a 4 year construction project. The contractor uses an MARR of 8%. The crane costs $500,000 and can be sold for $350,000 after 4 years. Determine the incremental benefit-co..
What is the modified internal rate of return of project : What is the modified internal rate of return (MIRR) of this project? Assume that the required rate is 14% What is the modified internal rate of return (MIRR) of this project?

Reviews

Write a Review

Financial Management Questions & Answers

  Financial sense-what is break-even cost per kilowatt hour

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.39 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs ..

  Set number of shares on a set date for a specific price

________________ are when the firm buys back a set number of shares on a set date for a specific price.

  Find the market value of common stock-intrinsic stock price

FCFs for year 1,2, and 3 are $20, $23, and $25 for a certain firm. The required rate of return for stock is 8%. Assume the firm’s life is 3 years then what should the stock price of this firm? This firm has $1 of debt and $1.5 of preferred stock. Num..

  What is the amount of the monthly payments

A commercial bank will loan you $55,480 for 7 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 14.20 percent of the unpaid balance. What is the amount of the monthl..

  Tax rate schedule-how much gain is included in gross income

Scot and Vidia, married taxpayers, earn $184,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule). This year, Fred and Wilma sold their home (sales price $750,000; cost $200,000). Al..

  What is the apr on this loan-what is the ear on this loan

You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 35-year mortgage loan for 85 percent of the $3,350,000 purchase price. The monthly payment on this loan will be $16,800. What is the APR on this loan?  What is th..

  Clothing depot maintains a debt-equity ratio

The Clothing Depot maintains a debt-equity ratio of .50 and follows a residual dividend policy. The firm needs $2,700 for new investments next year. The after-tax earnings this year are $1,700. What is the amount that the Clothing Depot will pay out ..

  What is the most that you should pay for the annuity

You just inherited some money and a broker offers to sell you an annuity that pays $9,000 at the end of each year for 20 years, with the first payment coming 5 YEARS FROM TODA. You could earn 5% on your money in other investments with equal risk. Wha..

  What is the difference between the positions of the traders

Trader A enters into a forward contract to buy an asset for $1000 in one year. Trader B buys a call option to buy the asset for $1000 in one year. The cost of the option is $100. What is the difference between the positions of the traders? Show the p..

  Calculate the historical growth rate in earnings

Radon Homes current EPS is $6.50. It was $4.42 five years ago. The company pays out 40% of its earnings as dividends and the stock sells for $36. Calculate the historical growth rate in earnings (hint this is a 5-year growth period.) What is Radon's ..

  Calculate ecos current after-tax cost of long term debt

Since its inception, Eco Plastics Company has been revolutionizing plastic and trying to do its part to save the environment. Eco's founder, Marion Cosby, developed a biodegradable plastic that her company is marketing to manufacturing companies thro..

  Calculate the accrued principal and coupon payment

Suppose you purchase a $1,000 TIPS on January 1, 2013. The bond carries a fixed coupon of 1 percent. Over the first two years, semi annual inflation is 2 percent, 2 percent, 4 percent, and 2 percent, respectively. For each six-month period, calculate..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd