What is the target share price five years from now

Assignment Help Finance Basics
Reference no: EM13271262

Davis, Inc., currently has an EPS of $1.20 and an earnings growth rate of 5 percent. If the benchmark PE ratio is 17, what is the target share price five years from now?

Reference no: EM13271262

Questions Cloud

Explain sf6 is sulfur heptafluoride : Correct the second part of each of the following statements. (Type your answer using the format copper(II) chloride for CuCl2, and CO2 for CO2.) (a) SF6 is sulfur heptafluoride. (b) Phosphorous pentachloride is Cl5P. (c) Carbon tetrachloride is CC..
Calculate the centripetal force acting on the body : a body of mass 0.1 kg is been rotated in a circular path of diameter 1 m on a frictionless horizontal plane bye means of a string. it performs 10 revolutions in 31.4 sec. calculate the centripetal force acting on the body
Prepare a presentation for an informational meeting : You will be analyzing change implementation, as your manager has requested you to prepare a presentation for an informational meeting with your team members.
Design 4-bit multi-function register to perform 5-functions : Design a 4-bit multi-function register that can perform 5 functions: 1) load a parallel number 2)multiply by 4 3)divide by 4 4)divide by 2 5) hold Use the inputs and outputs as described in the symbol shown and assume precedence in the order
What is the target share price five years from now : Davis, Inc., currently has an EPS of $1.20 and an earnings growth rate of 5 percent. If the benchmark PE ratio is 17, what is the target share price five years from now?
Explain three liquids of different densities are mixed : Three liquids of different densities are mixed. Because they are not miscible (do not form a homogeneous solution with one other), they form discrete layers, one on top of the other.
What is the smaller charge on the sphere : Two small nonconducting spheres have a total charge of 90.7?C. When placed 1.06 m apart, the force each exerts on the other is 10.6 N, What is the smaller charge on the sphere
What is the target stock price in one year : What is the target stock price in one year? Assuming the company pays no dividends, what is the implied return on the company's stock over the next year?
How should the capital structure weights used : How should the capital structure weights used to calculate the WACC be determined? Explain.

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the company stock price

Corporation x's stock trades at $90 a share. the company is contemplating a 3 for 2 stock split. Suppose that the stock split will have no effect on the market value of its equity.

  Determination of mva

Janjigian Company's stockholders have provided $15,250 of capital, part when they purchased new issues of stock and part when they allowed management to retain some of the company's earnings.

  Hedge the currency risk

For most part, the price of oil is denominated in dollars. Suppose you're a French firm that expects to import 42,000 barrels of crude oil in six months.

  Find the future value of investment plan

Suppose that you are setting up your retirement plan by planning two investment plans together. You want to earn a total of $1,000,000 after 30 years from two investment plans.

  Determine the expected return and coefficient of variation

A stock's return has the given distributions,  Determine the stock's expected return, standard deviation, and coefficient of variation.

  Compute the stocks justified price

A corporation's stock sells at a P/E ratio of 21 times earnings. It is expected to pay dividends of $2 each share in each of the next 5 years and to generate an EPS of $5 in five years.

  Calculate covariance between the returns of stock a and b

Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 0.13 and 0.18, respect..

  Comment on the risk exposure and the risk-return profile

Consider a newly-listed company of interest to you and using the 2009 or 2010 annual accounting reports explain its business and financial environment.

  What are the annual total cash flows

What are the annual total cash flows? What is the NPV if the project has a 13% required return?

  What was the rate of return on the funds

Your grandmother put $35,000 aside for you 13 years ago. Today, the account is worth $76,432.16. Assuming the money was invested with a daily compounding, what was the rate of return on the funds your grandmother saved?

  Which system resonates with you personally

Other cultures and legal systems absolutely refuse to allow a decendant, man or woman, to disinherit a child, minor or adult. Which system resonates with you personally?

  What would you expect the four-year treasury rate

According to the expectations theory of interest rates, what would you expect the four-year Treasury rate to be one year from now?

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