What is reasonable price range for microsoft

Assignment Help Financial Management
Reference no: EM131346681

Suppose Microsoft, Inc., reports earning per share of around $0.75. If Microsoft is in an industry with a PE ratio ranging from 30 to 40, what is a reasonable price range for Microsoft. Please explain/show work for best comprehension.

Reference no: EM131346681

Questions Cloud

Complete a swot analysis on mcm resort international : You have to complete a SWOT Analysis on MCM Resort International.one or two pargraph. You would like to summary the history of the MCM Resort International in my own words but we also can use the information from the website just as long as we cit..
Looking to supplement her wage from her job : Tina is 43 years old, is recently divorced, and is looking to supplement her wage from her job. Mona is a very high income investor who is looking for tax-free income. Jeff wants to invest a small part of his portfolio and take aggressive risks to pu..
What involvement of politic in emergency management response : What is the involvement of politics in emergency management response? Does the EOC need to take politics into consideration?
Why was the training ineffective : Explore different learning styles. Think of some of the trainings that you have attended in the past. Identify one training session that you attended that was not a good experience. What was wrong with the training session?
What is reasonable price range for microsoft : Suppose Microsoft, Inc., reports earning per share of around $0.75. If Microsoft is in an industry with a PE ratio ranging from 30 to 40, what is a reasonable price range for Microsoft. Please explain/show work for best comprehension.
Explain how the federal system of government works : Explain how the federal system of government works. Explore different perspectives on issues and questions about the U.S. government and national political processes.
Identifies eight risks currently facing the company : Create a risk register that identifies eight risks currently facing the company.- Explain how one of the identified risks stems from an aspect of the company's global marketplace activities
Describe the operations of this preamplifier circuit : Describe the operations of this preamplifier circuit and explain how these preamplifier circuits work with single-supply circuits in limiting low frequency resonating components from the signal?
How can the lessons you have learned positively affect : The assignment from this course that aligned with my profession are the assignment on training aspects of planning, design, implementation, and evaluation. How can the lessons you have learned positively affect your career success as a Preschool ..

Reviews

Write a Review

Financial Management Questions & Answers

  What happens to the firms earnings per share

The firm is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with 40% debt based on market values, its cost of equity, rs, will increase to 11% to reflect the increased risk. What would b..

  Determine the cost of equity capital for the firm

The Allegheny Valley Power Company common stock has a beta of 0.80. If the current risk-free rate is 6.5% and the expected return on the stock market as a whole is 16%, determine the cost of equity capital for the firm (using the CAPM).

  The dividends are expected to grow

A7X Corp. just paid a dividend of $2.50 per share. The dividends are expected to grow at 17 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 13 percent, what is the price of the..

  How long it will take to repay loan with initial proceeds

Mike French wishes to determine how long it will take to repay a loan with initial proceeds of $14,000 where annual end-of year instalment payments of $2,450 are required.

  The beginning of the current fiscal year

The capital accounts of Hogan and Moss have balances of $90,000 and $65,000, respectively on January 1, 2011, the beginning of the current fiscal year.  Prepare a statement of partners' equity for 2011 for the partnership of Hogan and Moss. If an amo..

  What will the expected growth rate be next year

Exim Inc. reported a return on capital of 12% on its existing assets and a reinvestment rate of 60% in the most recent year. It expects to improve its return on capital to 15% next year on both its existing and new investments, while maintaining its ..

  What is the meaning of share value maximization

What is the meaning of share value maximization? If a firm attempts to maximize its fundamental stock price, is this good, or bad, for society? Explain.

  Investment project provides cash inflows

An investment project provides cash inflows of $1,250 per year for eight years. What is the project payback period if the initial cost is $4,050? What is the project payback period if the initial cost is $5,100?

  Consider hedge fund with hypothetical initial equity

Consider a hedge fund with a hypothetical initial equity of £ 1,000,000 to invest. The investment company’s strategy involves a long and a short position in equities Ax and Bz. Assume that the positions the hedge fund takes are £900,000 long in Ax an..

  About the debt outstanding

The Schuhmacher corporation has debt outstanding. The total amount that it will have to pay to bondholders in one year's time at date 1 is $100 million. The firm's position since it has issued the debt five years about has steadily deteriorated. It o..

  What is the value of this periodic deposit

What is the value of this periodic deposit? Give a detailed explanation on your calculations and what is the sum of their present values? Give a detailed explanation on your calculations.

  Value subordinated debenture bonds with a coupon rate

Bunkys burgers issues some new 1000 par value subordinated debenture bonds with a coupon rate of 12% payable semi annually. the bonds mature 30 yrs. the bond does not ontain a call feature or a converson feature. Compute the annual rate of return you..

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