Firms expected dividend per share and growth rate

Assignment Help Financial Management

Reference no: EM131310848

Coca-Cola stock has an expected ROE of 14% per year, expected earnings per share of $4, and expected dividends of $2.50 per share. Its market capitalization rate is 15% per year. a) what are its expected growth rate, its price and its P/E ratio? b) If the plowback rate were 0.4, what would be the firms expected dividend per share, growth rate, price, P/E and PEG ratio?

Reference no: EM131310848

Questions Cloud

Identify three key solvency ratios : Identify three key solvency ratios (debt and asset ratios), explain in your own words how they are calculated, and discuss what each ratio can tell about an organizations performance.

Identify one liquidity-one solvency-one profitability ratio : Identify one liquidity, one solvency, and one profitability ratio, explain how they are calculated, and discuss what each ratio can tell about an organization s performance.

With reference to active versus passive portfolio management : Recall the EMH you learned in week 3. if everyone in the market believes in resistance levels, why do these beliefs not become self-fulfilling prophecies? With reference to the active versus passive portfolio management, what would happen to the mark..

Used either to scale up or reduce overall protfolio risk : Options can be used either to scale up or reduce overall protfolio risk. What are some examples of risk-increasing and risk-reducing options strategies? Explain each. Why do you think the most actively traded options tend to be the ones that are near..

Firms expected dividend per share and growth rate : Coca-Cola stock has an expected ROE of 14% per year, expected earnings per share of $4, and expected dividends of $2.50 per share. Its market capitalization rate is 15% per year. what are its expected growth rate, its price and its P/E ratio? b) If t..

What is the invoice price of bond : A bond with a settlement date of April 30, 2013 and a maturity date of May 15, 2021 has a coupon rate of 6.7%. (bond equivalent yield, semiannual compounding), If the yield to maturity of the bond is 6.33%, what is the list price of the bond on the s..

What is the accrued interest on the bond : A bond with a settlement date of April 30, 2013 and a maturity date of May 15, 2021 has a coupon rate of 6.7%. (bond equivalent yield, semiannual compounding), If the yield to maturity of the bond is 6.33%, what is the list price of the bond on the s..

Compare the capital gains for the interest rate : Calculate the price of the bond for a market interest rate of 3% per half year. Compare the capital gains for the interest rate decline to the losses incurred when the rate increases to 5%

What is the alpha of each stock : Stock XYZ has an expected return of 12% and B = 1. Stock ABC is expected to return 13% with a beta of 1.5%. The market's expected return is 11% and r1 = 5%. According to the CAPM,which stock is a better buy? What is the alpha of each stock? What is t..

User Account

All Pages