Talk on the factors influencing this price result

Assignment Help Financial Management
Reference no: EM131346312

Pabon has a P/E of 10 and a dividend of $2 per share. It has 1 m shares outstanding and $80 m of book value of equity. Pabon expects to make EAT of $5 million in the coming year. Derive its price. Talk on the factors influencing this price result.

Reference no: EM131346312

Questions Cloud

Incorporation acquire corporate status : A company, may upon incorporation acquire a corporate status. it can thus sue and be sued in its own name. members and their properties are separate and independent of the company. with the aid of decided cases, examine the above statement.
What will the share price and the total number of shares : CE currently has 350,000 shares of stock outstanding that sell for $76 per share. Assuming no market imperfections or tax effects exist, what will the share price and the total number of shares after each of the following? (Please consider each one i..
What influences the payout ratio : What influences the payout ratio? Ascertain that you include the industry type and the product life cycle. How is it possible that a firm may ruin value by retaining its profit and investing in itself? To answer that question what two metrics should ..
Ementioned analysis convolute as performance measure : Include the issue of manipulation of BVPS. That is, talk on the manipulation of assets and liabilities and number of outstanding shares. What else does the a for ementioned analysis convolute as a performance measure?
Talk on the factors influencing this price result : Pabon has a P/E of 10 and a dividend of $2 per share. It has 1 m shares outstanding and $80 m of book value of equity. Pabon expects to make EAT of $5 million in the coming year. Derive its price. Talk on the factors influencing this price result.
Common stock value employing price-earnings multiples : Valuation with price/earnings multiples For each of the firms shown in the following table, use the data given to estimate its common stock value employing price/ earnings (P/E) multiples.
Cash flow valuation model to estimate common stock value : Using the free cash flow valuation model to price an IPO Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $12.50 per share. Use the free cash flow valuation model to estimate CoolTech’s common stock val..
Common stock value-constant growth the common stock : Common stock value: Constant growth The common stock of Denis and Denis Research, Inc., trades for $60 per share. Investors expect the company to pay a $3.90 dividend next year, and they expect that dividend to grow at a constant rate forever. If inv..
Fully utilized at optimal product mix and interpret results : There are 6 pounds of chocolate mix available, and it takes 2 pounds of chocolate mix to make a dozen cookies. Profits for these chocolate covered cookies are now $.40 instead of $.30 dozen. If the other conditions of the problem remain unchanged. Fi..

Reviews

Write a Review

Financial Management Questions & Answers

  Exercise on bond valuation

An investor has two bonds in her portfolio that have a face value of $1000 and pay a 10% annual coupon.   Bond A matures in 15 years, while Bond B matures in 1 year. Why does the longer-term bond price vary more than the price of the shorter-term bon..

  Hiring individuals with strong personal ethics

Businesses can make sure that they are hiring individuals with strong personal ethics by:

  The internal rate of return of a capital investment

The internal rate of return of a capital investment

  When computing estimated capital budgeting cash flows

When computing estimated Capital Budgeting cash flows, you want the cash flow to be ____.

  Share of their stock for every share of target firms stock

Suppose that prior to a merger the stock price of the target company was $50 and the stock price of the acquiring company was $40. If the acquiring firm agrees to pay 1.5 share of their stock for every share of the target firms stock, then what premi..

  Common stock is currently selling

Greens Company’s common stock is currently selling for $66 per share. Last year, the company paid dividends of $3.45 per share The projected growth rate of dividends for this stock is 3.56 percent. Which rate of return does the investor expect to rec..

  Various discounting periods-semi annual compounding

Present value for various discounting periods-Find the present value of $800 due in the future under each of these conditions: 15% nominal rate, semi annual compounding, discounted back 10 years.

  Capm and required return

CAPM AND REQUIRED RETURN - Calculate the required rate of return for Manning Enterprises assuming that investors expect a 3 5% rate of inflation in the future. The real risk-free rate is 2 5%, and the market risk premium is 6 5%. Manning has a beta o..

  What is the expected cost of goods sold

Vikings Inc., is developing a pro form income statement for the coming year. The chief financial officer estimates that sales will be $150,000,000. If gross profits are historically 36% of sales, what is the expected cost of goods sold (in dollars)?

  Discount medical expenses so high-need individuals

Does Medicaid's medically needy category make sense to you? Why or why not? For example, is it a good idea to discount medical expenses so high-need individuals can access healthcare through Medicaid?

  Involving business relationships

Barney and Marilyn have been married for six months. They engage in negotiations consistently as a way to improve their understanding of each other and to build a loving relationship. How does this "relationship" negotiation differ from the negoti..

  Explain why firm might prefer stock repurchase

Explain why a firm might prefer a stock repurchase... Bookmark Explain why a firm might prefer a stock repurchase rather than an increase in the firm's regular dividend.

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