What is a reasonable price for a share of rah stock

Assignment Help Finance Basics
Reference no: EM13283759

RAH Inc. is not public ally traded, but the P/E ratios of its 4 closest competitors are 15, 15,3,15,7', and 16.5. RAH's current earnings per share are $ 1.50. They are expected to grow at 6% for the next few years. What is a reasonable price for a share of RAH stock.

Reference no: EM13283759

Questions Cloud

What is yield that trevor would earn by selling the bond : Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $964.05. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,071.10, what is the yield that Trevor would earn by s..
Calculate the speeders speed with respect to the ground : The wave reflects from the speeder's car and returns to the police car, where its frequency is measured to be 322 Hz less than the emitted frequency. Calculate the speeder's speed with respect to the ground.
With what initial velocity were the keys thrown : A student throws a set of keys vertically upward to his fraternity brother, who is in a window 3.60 m above. With what initial velocity were the keys thrown
What is the maximum strength of the waves electric field : The maximum strength of the magnetic field in an electromagnetic wave is 3.44E-6 T. What is the maximum strength of the wave's electric field
What is a reasonable price for a share of rah stock : RAH Inc. is not public ally traded, but the P/E ratios of its 4 closest competitors are 15, 15,3,15,7', and 16.5. RAH's current earnings per share are $ 1.50. They are expected to grow at 6% for the next few years. What is a reasonable price for a..
Determine the polar coordinates for the following points : If the polar coordinates of the point ( x , y ) are ( r , ? ), determine the polar coordinates for the following points
How much energy does this wave carry through window : The electromagnetic wave that delivers a cellular phone call to acar has a magnetic field with an rms value of 1.38E-10 T. The wavepasses perpendicularly through an open window, the area of which is0.244 m2.
What percentage of the rock is gold by volume : A prospector finds a solid rock composed of granite (? = 2650 kg/m3) and gold. What percentage of the rock is gold by volume
Do you agree with the bonneau decision to sell : 1. Do you agree with the Bonneau's decision to sell? Why or why not? 2. Why did the buyer's retain Ed as a consultant? 3. Do you see any problem with having the Bonneau's son-in-law become the new chief operating officer?

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the current price of the bond

Compute the current price of the bond. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)

  Describe common stock valuation with different growth rates

Describe Common stock valuation with different growth rates over a period

  What is going on in the industry

What is going on in the industry? How are the two firms competing? What are the competitive prospects for the forseeable future?

  What is ladders roe and roa

Ladders Inc. has a net profit margin of 5.5% on sales of $50.6 million It has book value of equity of $39.5 million and total book liabilities of $31.9 million. What is Ladders ROE and ROA?

  What is the probability that in the next sample of 25 flight

At any given moment, the airport managers estimate that there is a 1% chance of a runway incursion (near-miss). What is the probability that in the next sample of 25 flights, 1 or fewer runway incursions will occur?

  Interest on bonds article critique

Describe how the article applies or relates to the financial management of company and answer the following questions in 600 words. Use one outside source as reference.

  What is the investor overall return for the four years

Good years are followed by equally bad years for a mutual fund. It earns +8%, -8%, +12%, -12% in successive years. What is the investor's overall return for the four years?

  Department store plans to liberalize the firm credit policy

The new credit manager of Kay's department store plans to liberalize the firm's credit policy.

  Determine the numerical grades that conform to the curve

Determine the numerical grades that conform to the curve Professor Moore wants to establish.r Moore wants to establish.

  Calculate the value of fraziers stock

Frazier Manufacturing paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Frazier has a beta of 1.3. If the market is returning 11% and the risk-free rate is 4%, calculate the value of Frazier's stock.

  Investment alternatives for highest after-tax rate of return

analyze the following investment alternatives for the highest after-tax rate of return under the assumption that the client is subject to a 28% marginal federal income tax and a 5% state income tax. • A corporate bond with a 7% pretax return

  Define financial risk

When we think "risk" in a financial sense, the meaning differs from the conventional definition. Describe what is meant by "risk" in the financial/investment realm.

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