Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Company ABC has a market capitalization of $750 million, Book Value (Shareholder’s Equity) Per share of $15 and net income of $25 million. If the stock is currently trading at $30. The
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3.3%
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6.7%
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9.3%
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50.0%
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- Using the P/E multiples approach to valuation, What is the estimated price of a stock if the firm’s P/E ratio is 18.2 and it’s earnings are $452,000? Assume that there are 100,000 shares of stock outstanding.arrow_forwardWhat is the dividend yield if the annual dividend per share is $7.50 and the market price of a share of stock is $97?arrow_forwardAssume Skyler Industries has debt of $4,775,777with a cost of capital of 7.8% and equity of $5,798,398 with a cost of capital of 9.6%. What is Skyler’s weighted average cost of capital for equity? Round to the nearest hundredth, two decimal places and submit the answer in a percentage.arrow_forward
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