Company is in industry with pe ratios

Assignment Help Financial Management

Reference no: EM131844795

Show your work

If you can explane step by step, that will be awesome for me.

Boston Corp. has an outstanding convertible bond with a face value of $1,000. The bond can be converted into 12 shares of common stock.

Boston Corp. is trading at $80 per share. It pays an annual dividend of $1.60 per share, and analysts expect it to trade at $82 one year from now.

Boston Corp. has just reported earnings per share of $3.20. If the company is in an industry with PE ratios that range from 18 to 20, what is a reasonable price range for Boston Corp.?

Reference no: EM131844795

Questions Cloud

Create detailed design lan wan and edge network diagrams : Create detailed design LAN, WAN, and Edge Network diagrams in Microsoft Visio. How and where the designs meet customer requirements.

Define incremental cash flow : Define “incremental cash flow.”. Calculate the after-tax salvage cash flow. Construct annual incremental operating cash flow statements.

Specific advertising campaign of a product : Select a specific advertising campaign of a product or service to evaluate.

Smith objections to affirmative action : "Of course we cannot take seriously Senator Smith's objections to affirmative action; his womanizing is well-known." This is an example of what type of fallacy?

Company is in industry with pe ratios : If the company is in an industry with PE ratios that range from 18 to 20, what is a reasonable price range for Boston Corp.?

Develop a school-community relations response : Develop a school-community relations response to a likely emergency or crisis scenario. Upon completion of a needs assessment

Explain the concept of outsourcing and its associated risks : Human Resources and Management Assignment - Explain the concept of outsourcing as well as its associated risks, using your own words

The 1981 air traffic controllers strike : Union negotiators may find that the authority limits they are authorized to use in a labor negotiation by their union members

Discuss about the article- gender and race as variables : Post your thoughts about the relationship of these articles to your professional practice or your personal experience.

User Account

All Pages