Based on the company own trailing pe-the stock is worth

Assignment Help Financial Management
Reference no: EM131297719

The 5-year average trailing P/E of a stock is 18x. The last year EPS was $4.25 and the estimated EPS for the next year is $4.50. Company also paid a dividend of $3.00 last year and is expected to pay a dividend of 3.10 next year. Based on the company’s own trailing P/E, the stock is worth

Reference no: EM131297719

Questions Cloud

A new compensation plan with a lower base salary : The company just implemented a new compensation plan with a lower base salary but the potential for large bonuses.- You are very excited about the plan, but your friend is not. Explain why this may be so.
Discuss the evolution of international agreements : Explain what is meant by "Open Skies" and discuss the evolution of these international agreements affecting access to world aviation markets. Compare "Open Skies" arrangements with bilateral agreements.
Identify a specific problem in your community : Identify a specific problem in your community that has been solved through a law enforcement initiative. If possible, base your paper on an interview you conduct with the person or persons responsible for creating and administering the program
Calculate the expected return and standard deviation : The stock of Bruin, Inc., has an expected return of 16 percent and a standard deviation of 31 percent. The stock of Wildcat Co. has an expected return of 11 percent and a standard deviation of 46 percent. The correlation between the two stocks is .31..
Based on the company own trailing pe-the stock is worth : The 5-year average trailing P/E of a stock is 18x. The last year EPS was $4.25 and the estimated EPS for the next year is $4.50. Company also paid a dividend of $3.00 last year and is expected to pay a dividend of 3.10 next year. Based on the company..
How might employees benefit from the system : How might employees benefit from the system? In a company with many employees, different employees will respond to different kinds of motivation.
What is amount of collection float as of the end of the day : As of this morning, your firm had a ledger balance of $4,591 with no outstanding deposits or checks. Today, your firm deposited 2 checks in the amount of $321 each and wrote a check in the amount of $961. What is the amount of the collection float as..
Justification of the integration mechanisms : Justification of the integration mechanism(s) chosen by national partners on the basis of their value orientation.
Discuss the legal concets related to law : Discuss the legal concets related to law:The issues in a suit for damages by Rebecca against Derrick; and The issues in a suit for damages by Derrick against Cakes and Things, Inc., including any counterclaim Cakes and Things, Inc., may have.

Reviews

Write a Review

Financial Management Questions & Answers

  Annual sales of an energy saving device

It is estimated that the annual sales of an energy saving device will be 20,000 the first year and increase by 10,000 per year until 50,000 units are sold during the fourth year. The variable manufacturing cost per unit under proposal A is estimated ..

  What is marginal cost of borrowing if the loan

A bank offers two 30 year, fixed rate, fully amortizing LPMs: an 85% LTV loan at 6%, and an 80% LTV loan at 5,5%. What is marginal cost of borrowing if the loan is going to be held for 10 years?

  Four investments-annually in mutual fund

You invest $3,000 annually in a mutual fund that earns 11 percent annually, and you reinvest all distributions. How much will you have in the account at the end of 15 years? You invest $3,000 annually in a mutual fund with a 4 percent load fee so tha..

  Briefly discuss collateralized debt obligations

A bank sells a “three against six” $3,000,000 forward rate agreement (FRA) for a three- month period beginning three months from today. The purpose of the FRA is to cover the interest rate risk caused by the maturity mismatch from having made a three..

  What does term risk mean in the context of capital budgeting

Iron Ore What? (IOW) Casting Company is considering adding a new line to its product mix. Sydney Johnson, a recently minted MBA, will be conducting the capital budgeting analysis. What does the term “risk” mean in the context of capital budgeting? To..

  Outstanding with various times-to-maturity and coupon rates

Microsoft currently has 21 long-term bond issues outstanding with various times-to-maturity and coupon rates. One of these bonds matures on June 1, 2039, approximately 25 years from today. The bond is currently selling for $1,153.06, based on a face ..

  Double the amount that can pass transfer tax free

John and Mary are interested in passing the maximum amount to their grandchildren upon their deaths. Can they utilize portability for GST purposes to double the amount that can pass transfer tax free?

  What is your portfolios expected return

A risky asset has an expected return of 12% and standard deviation of 18%. The risk-free rate is 6%. If you invest 40% of your funds in the risk-free asset and 60% of your funds in the risky asset, What is your portfolios expected return? What is you..

  Calculate and report the cost of the options

Calculate and report the cost of the options, including the opportunity cost. Calculate IBM’s total dollar proceeds and effective ex-rate in one year for the following spot ex-rates in one year: $1.5800/£, $1.5500/£, $1.5000/£ and $1.4750/£ (in that ..

  The annuitant can never outline the annuity payments

One feature that all annuity contracts have in common is that the annuitant can never outline the annuity payments. Risky investments always perform better than less risky investments over a five-year period. Generally, investments that have the pote..

  Cash flow effect from change in net working capital expected

For project A, the cash flow effect from the change in net working capital is expected to be -300 dollars at time 2, the level of net working capital is expected to be 1,300 dollars at time 0, and the level of net working capital is expected to be 1,..

  What is the current value of the annuity

A five-year annuity of ten $8,000 semi annual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 8 percent compounded monthly, what is the value of this annuity 5 years from now? What is th..

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