### What is the share price if the plowback ratio

Assignment Help Finance Basics
##### Reference no: EM13303282

You are the CEO of company F. The current earnings per share is \$10 and the return on equity is 25%. You will resign after next year's dividend due to change of management and the share price after your resignation is expected to be earnings per share at that time multiplied by the current P/E ratio of 9.

What is share price if the plowback ratio is 0.5? What is the share price if the plowback ratio is 0? Explain the reasons for the difference in your two answers.

#### Questions Cloud

 Determine the elongation of the plate under a tensile load : a flat steel plate of 10mm thickness varies in width from 150mm to 300mm over a length of 1.5m. Determine the elongation of the plate under a tensile load of 250KN Calculate the density it will have in any ideal gas state : List the densities in solid, liquid and gaseous state. Also compare the densities for each of them and calculate the density it will have in any ideal gas state. Determine the force and the distance : A 2.6-kg sphere of radius 35 cm is initially rolling on a flat surface with a speed of v = 0.40 m/s. Determine the force F and the distance l Determine the allowable value of the tensile load p : A steel bar serving as a vertical hanger to support heavy machinery in a factory is attached to a support by the bolted connection. The main part of the hanger has a rectangular cross section with width b1 = 1.5 in. and thickness t = 0.5 in. What is the share price if the plowback ratio : What is share price if the plowback ratio is 0.5? What is the share price if the plowback ratio is 0? Explain the reasons for the difference in your two answers. Determine the force that the hinge puts on the gate : A rectangular gate 6 ft tall and 5 ft wide in the side of an open tank is held in place by the force F as indicated in the figure. The weight of the gate is negligible, and the hinge at O is frictionless. What is the maximum speed attained by the person : A person bounces up and down on a trampoline, while always staying in contact with it. What is the maximum speed attained by the person Find the optimal solution by using the graphical solution : Find the optimal solution by using the graphical solution technique and what is the value of the objective function? What are the values of all variables? What are the main differences between equity and bond : How do you justify the fact that share value is determined by PV of all future dividends but most investors don't need to hold the share forever to profit from such investment?

### Write a Review

#### Find the depreciation charge each year

Doug bought a new car for \$40,000 that will be depreciated using the MACRS depreciation scheduale for a 5-year period.

#### What is the value of rolens preferred stock

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 11% of its \$100 par value. Preferred stock of this type currently yields 9%. Assume dividends are paid annually.

#### What is the yearly holding and setup cost for this item

Quarter-inch stainless-steel bolts 1 ½ inches long are consumed in a factory at a fairly steady rate of 60 per week. The bolts cost the plant 2 cents each. It cost the plant \$12 to initiate an order, and holding costs are based on an annual intere..

#### Evaluate an employee benefits plan

Determine what components can be included in a cafeteria plan? What types of employee compensation plans do you recommend for the company that you are evaluating?

#### Calculate the market-to-book ratio for lab r doors

Market Value Ratios Lab R Doors' year-end price on its common stock is \$43. The firm has total assets of \$78 million, the debt ratio is 57%, no preferred stock, and there are 4.3 million shares of common stock outstanding. Calculate the market-to-..

#### What is the value of the stock to an investor

An Allied Northern preferred stock pays a \$3.84 annual dividend. What is the value of the stock to an investor who requires a 9.5% return?

#### Determine the five-year equivalent annual annuity

Determine the five-year equivalent annual annuity of the following project if the ap¬propriate discount rate is 16%.

#### International justice or human rights

Write down a 3-4 pages about International Justice or Human Rights Watch Now adays. How its shaping lifes, and what we need to do as human rights organization more to improve?

#### Converting foreign subsidiary trial balance accounts

What is the basis for deciding whether to use the spot rate or some other exchange rate when converting a foreign subsidiary's trial balance accounts into U.S. dollars under the temporal method?

#### Prepare a pro forma income statement

A proposed new investment has a projected sales of 750000. Variable costs are 55 percent of sales, and fixed costs are 164000; depreciation is 65000. prepare a pro forma income statement assuming a tax rate of 35 percent. what is the projected..

#### What is the current pe ratio for each company

Assume that all earnings are paid as dividends and that both firms require a 13 percent rate of return.

#### Concept of inefficient markets and corporate decisions

Suppose the comments of Brian Walker, the president of Herman-Miller North America, who was quoted in chapter as having said: 'For dot.coms, it appears that market has implicitly capitalized a lot of those costs.