Computation of earnings per share

Assignment Help Finance Basics
Reference no: EM1356824

In late 2002, analysis was forecasting fiscal 2003 and 2004 earnings per share for Cisco systems of $.54 and $.61 respectively. Cisco's shares traded at $15 at the time,. Assuming the long-term growth rate will be at 4 percent. The average rate of growth for gross national product, value Cisco using the model in equation in this chapter. Apply the formula to earnings rather than operating income and use a required return for equity of 9 percent.

Reference no: EM1356824

Questions Cloud

Compute the dividends, net of capital contribution : Compute the dividends, net of capital contribution, for 2006. Compute ROCE, use average net book value in the denominator.
What problem is that the professors also want to attend : The problem is that the professors also want to attend the party and enjoy the music with the students but they can only attend if they agree to serve beer to the students. Normally, professors do not like this. The marginal cost to them is 200.
Find the magnitude of the amount : A meter stick lies on the bottom of a 100 cm long tank with its zero mark against the left edge. You look into the tank at a 30 angle, with your line of sight just grazing the upper left edge of the tank.
Explain and critical analysis of leadership under pressure : Explain and Critical Analysis of Leadership Under Pressure and Thoroughly read the case study of "Reflex Systems" to observe how people react to organizational pressure
Computation of earnings per share : Analysis was forecasting fiscal 2003 and 2004 earnings per share for Cisco systems of $.54 and $.61 respectively. Cisco's shares traded at $15 at the time. Suppose the long-term growth rate will be at 4%.
Explain about democratic leadership : Democratic Leadership - Which of the following statements about democratic leadership is false?
What is the mass of planet z : Planet Z is 12,000 km in diameter. The acceleration due to gravity on Planet Z is 7.0 m/s2.
Hrm practices amongst fortune 500 companies : Find and discuss the pros and cons of each functional area and state whether or not this practice will be one of your recommendations.
Find the maximum compression of the spring : A 5.25 kg ball of clay is thrown downward from a height of 2.79m with a speed of 4.41 m/s onto a spring with k=1530 N/m. The clay compresses the spring a certain maximum amount before momentarily stopping.

Reviews

Write a Review

Finance Basics Questions & Answers

  Capital structure decisions-key information

Elephant Books sells paperback books for $7 each. The variable cost per book is $5. At current annual sales of 200,000 books, the publisher is just breaking even.

  Calculate the present value for the data furnished

Calculate the present value for the data furnished and a security that will begin making payments when you retire in 20 of $20,000

  Relative performance analysis

General Electric Relative performance analysis, compute the average five-year average return in your industry.

  Compute the present value of a two-period annuity

Compute the present value of a two-period annuity of $1 per period if the discount rate is 10 percent.    A two-period annuity of $1 per period has a present value of $1.808.  Find the discount rate from the present value table.

  Acquisitions-verizon wireless

Looking at recent acquisitions of Verizon Wireless, find out two acquisitions to answer the following questions about each acquisition. What is the reason for acquisition that was employed as the logic by your firm in justifying the acquisition? De..

  Information about initial public offerings

Your work for this module is to apply the concept of the present value to your chosen SLP company. Assume your company is selling the bond that will pay you $1000 in one year from today.

  Government tax revenues or increased government costs

How much would such approach cost or benefit government in form of increased government tax revenues or increased government costs?

  Calculate after-tax cost of debt financing

Last year Wei Guan corporation had $350 million of sales, and it had $270 million of fixed assets that were used at 65 percent of capacity. In millions, by how much could Wei Guan's sales raise.

  Interest versus dividend income

Compute the firms tax on its operating earnings only. Find out the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds.

  How to add stockholders wealth during 2012

Find how much value did management add to stockholders' wealth during 2012? Write out your answer completely.

  Computation of required rate of return using capm approach

Computation of required rate of return using CAPM approach and which security would be the best investment

  Write a two-page policy brief

Describe how ‘sin’ taxes have changed in your state over time.  How does this compare to other states in your region and how does the level of the ‘sin’ taxes in your state compare to the national average?

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