QUESTION 21 ABC's Net Income this year was $29,532,000 and there were 8.4 million shares outstanding. If the firm's Price/Earnings Ratio (P/E Ratio) is 17.6 then what is the firm's share price? $61.88 $61.26 $60.93 $55.69
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- Question 21 As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: D 0 = $0.80; P 0 = $22.50; and g L = 8.00% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings? a. 11.25% b. 10.69% c. 11.84% d. 12.43% e. 13.05% Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 210,000 Total CL $ 70,000 Total CA $294,000 Long-term debt 70,000 Net fixed assets 126,000 Common equity 280,000 Total assets $420,000 Total liab. and equity $420,000 Sales $280,000 Net income $ 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70,…Q20 The current market price of an equity share of a company is OMR 70, cost of equity is 14.85% and expected growth rate in dividends is 7.05%, then what is current dividend per share? a. OMR 5 per share b. OMR 5.145 per share c. OMR 15.33 per share d. OMR 5.46 per shareQUESTION 11 Song Corp's stock price at the end of last year was $23.50 and its earnings per share for the year were $1.30. What was its P/E ratio? a.17.17 b. 18.98 O c. 19.93 d. 18.08 e.20.93
- 37-The current market price of an equity share of a company is OMR 70. The expected dividend per share is OMR 5.50. If the cost of equity is 14.85%, what would be the expected growth rate in dividends? a. 5.39% b. 5.5% c. 7% d. 7.85%q6- You are using Bloomberg to look up financial information for Delta Ltd. You determine that the share price is currently $13.80 and that the value of dividends paid over the past year was $1.41. You paid $8.47 for the share exactly one year ago. What would you expect the dividend yield to be according to Bloomberg? a. 62.93% b. 10.22% c. 79.57% d. 16.65%JM Computers Joseph's Transport Share price at the beginning of the year $20 $15 Share price at the end of the year $26 $18 Dividends received during the year $5 $2 Average Co-efficient of variation over the last three years 0.480 0.251 Total number of shares owned 10 000 5 000 Required: Calculate the return on investment per share for each investment. Calculate the total return earned the year for this entire shareholding of each company. Show the realised and unrealised portion of this total return. Explain how to use the co-efficient of variation in this investment decision. What share investment is recommended
- Question 34 The equity portion of the balance sheet for BusFin Inc.is shown below. If the stock price is $30 per share, calculate the market to book ratio. Equity Portion of BusFinance Inc. Balance Sheet, 2022 Common stock ($0.25 par) $1,007,924 Capital surplus Retained earnings 27.46 41.32 48.67 30.00 13.73 $1,476,958 $1,919,50610-3 Given the following share price history, what is the arithmetic average return per share? Year Share price 1 $20 2 $22 3 $24 4 $26 5 $28 Select one: a. 3.24% b. 4.05% c. 5.36% d. 8.78% e. 10.75%QUESTION 19 Use the corporate valuation model to find the intrinsic value of a firm with a long-run growth in FCF of 5.75% and a WACC of 8.12%. The firm has $45 million in debt and preferred stock and has 4.5 million shares of common stock. The FCF for the first 4 years are (in millions of dollars): -$15, $12, $14, $19. OA. $63.90 B. $84.60 OC. $132.61 OD. $154.33
- Q18 A company’s cost of equity is 12% and its share is quoted in the market at OMR 40 currently. If the current dividend per share is OMR 2.8, then what would be expected growth rate of dividend, assume dividends are growing at constant rate? a. 7% b. 8.4% c. 5% d. 19%44 A company pays a $3.36 per share cash dividend this year on its common stock. The current market value of the stock is $35.00 per share. Compute the company's dividend yield. If a competitor with a dividend yield of 6.10 % is considered an income stock, would we classify this company's stock as a growth stock or an income stock? Complete this question by entering your answers in the tabs below. Dividend Yield Dividend Classification Compute the company's dividend yield. Choose Numerator: Dividend Yield Choose Denominator: = Dividend Yield Dividend yield %Company Dividend Yield Dividend next year Chesapeake Energy Corp 7.91% $1.74 What is Chesapeake's price?
