What is the current price of the stock

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1. A stock has a price of $40.4 and earnings per share of $3.11. What is the price-earnings ratio? Enter your response below rounded to 2 DECIMAL PLACES.

2. A preferred stock will have an annual dividend next period of $2.17 that will be paid in perpetuity. The discount rate is 9.4%. What is the current price of the stock? Enter your response below rounded to 2 DECIMAL PLACES.

3. A company is expected to have earnings per share of $3.4 this year and to pay a dividend of $2.33. The discount rate for the stock is 17.4% and the rate of return on reinvested earnings is 20.6%. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below rounded to 2 DECIMAL PLACES. % Click "Verify" to proceed to the next part of the question.

4. Consider a stock that is expected to pay a dividend of $1.32 one year from now. The dividend is expected to grow at a constant rate of 1.5% per year forever. Firms in the same industry provide an expected rate of return of 13.2%. What is the current price of the stock? Enter your response below rounded to 2 DECIMAL PLACES.

Reference no: EM133068794

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