How do you calculate price earnings ratio, given the stocks historical prices?

Q: Which of the following ratios would analysts use to value stocks? Select one: a. All of the above b.…

A: Price-to-Earnings Ratio is a ratio that measures the current share price to the companies earning's…

Q: what is the return of stock a what is the return of stockb what is the standard deviation on stock…

A: Given: tate Probability(P) Return A Return B Poor 40% -0.08 -0.15 Normal 35% 0.19 0.14 Good…

Q: Based on the dividend growth model, what are the two components of a stock’s rate of return?

A: Formula: Rate of return = Expected dividendCurrent stock price + Growth rate

Q: What are the two components of most stocks’ expected total return?

A: Expected total return refers to the full return of an investment over a certain period of time.

Q: How can you chart and predict falling or rising wedges for stocks?

A: Short-term, medium-term, and long-term trends: Stock Prices move either upwards, downwards, or…

Q: What does the meaning of maximum and minimum price in the stock performance graph? how to know which…

A: Succinctly summarized, a stock chart is a graph that illustrates the price of a stock over a certain…

Q: How are stocks characterized? In detail

A: Stock are important sources of capital and company raises capital through the stock.

Q: what is the best type of chart to represent the variable Tesco Stock Price?

A: The stock price movements can represent with the help of different chart patterns. The different…

Q: What is the relative change in a market value-weighted index? Enter your answer as a decimal number…

A: Market value-weighted index - It is also known as capitalization -weighted index. Here securities…

Q: In what sense do these market value ratios reflect investors’ opinions about a stock’srisk and…

A: The ratios that relate the company's stock price to its earnings and the book value of each share.…

Q: Differentiate between the terms expected rate of return, required rate of return, and historical…

A: The expected rate of return is the normal rate of return that the speculation can anticipate. By and…

Q: Explain the Weighted Average Coupon?

A: Weighted average coupon (WAC): It is a proportion of the rate of return for a pool of home loans…

Q: Discuss how each of the major domestic macroeconomic factors may affect stock prices.

A: Macroeconomic factors : A macroeconomic effect is a tendency, trend, or circumstance that arises…

Q: What is the formula for the cost of preferred stock?

A: With flotation cost in %: Cost of preferred stock = Preferred dividend / (Price*(1-Flotation cost)

Q: Explain realized rate of return on stock

A: Realized Rate of Return on stock gives you the percentage return on holding the stock for a certain…

Q: What is relationship between the market risk of a stock and it's expected return?

A: Expected return is directly related to the market risk . Market risk is represented by beta. Higher…

Q: What is meant by the term “distributionpolicy”? How has the mix of dividend payoutsand stock…

A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…

Q: Define actual rate of return on stock

A: Actual rate of return on stock

Q: Explain how to find the value of a stock given itslast dividend, its expected growth rate, and…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: What is the difference between stock price indexes that are simple averages of prices and those that…

A: A stock index, often known as a stock market index, is a financial index that monitors a stock…

Q: How do stock repurchases affect the EPS and ROE ratios?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How does the current price of a stock depend on its own past values, as well as the current and past…

A: Market index of stock gauges the stock market which assists investors to analyze the market…

Q: Are stock prices affected more by long-term or short-termperformance? Explain.

A: Answer: The stock prices are influenced by results in both the long and the short term. The…

Q: How do the price/earnings (P/E) ratio and the market/book (M/B) ratio provide a feel for the firm's…

A: The financial ratios refer to the ratios that are calculated using the financial data from the…

Q: To estimate the required rate of return on a stock we can use the Capital Asset Pricing Model (CAPM)…

A: The required rate of return on a stock can be defined as a rate of return which an investor would…

Q: explain Movement of stock prices on the basis of technical analysis , fundamental analysis and…

A: Technical analysis of price movement is the analysis of future price movement by taking into account…

Q: Use the following information on states of the economy and stock returns to calculate the expected…

A: An expected return is calculated by multiplying potential outcomes by the there probabilities

Q: You would like to speculate on a rise in the price of a certain stock. The current stOCK

A: Speculation is a strategy of trading stock in which the investor buys or sells the stocks by…

Q: How can the model be used to estimate the predicted return ona stock?

A: Predicted rate of return: Predicting a rate of return is the method of calculating future rate of…

Q: What effect do increasing inflation expectations have on the required returns of investors in common…

A: Inflation: it is increase in the price of most of the goods and services.

Q: How will the change in required return influence the price of a stock? How will the dividend growth…

A: The Gordon growth model calculates the price of the stock by using the dividends, growth rate of…

Q: Apart from using PE ratio, what is another way of valuing the stock price? if we have the EPS, Share…

A: PE ratio stands for price to earning ratio, which is a part of financial ratio that is used to…

Q: In Shiller’s terminology, what are ex post stock prices?

A: The intrinsic value of the stock could be higher or lower. The stock investor's purpose is to find…

Q: How to calculate selling price, markups, markdown, stockturn rate, and return on investment.

A: Financial Ratio: A financial ratio, or bookkeeping proportion, is the general size of two chosen…

Q: How do stock prices vary with the following: 1. the expected growth rate of dividends (earnings);…

A: As per the dividend growth model (DGM), the cost of equity is determined by accounting for the…

Q: 3. Which of the following is known as current stock yield? A. Market Value B. Par Value C. Stock…

A: The current yield is an investment's annual income (interest or dividends) divided by the current…

Q: According to Technical Analysis, a stock velocity statistics most closely resembles which of the…

A: "Hi, Thanks for the Question. Since you asked multiple question, we will answer first question for…

Q: How do you calculate conditional volatility of a stock returns?

A: Volatility represents how large an asset's price swing around the mean price i.e the statistical…

Q: How would you use these to evaluate whether or not a current stock price is perhaps to high…

A: The term stock price refers to the current market price of a share of stock, and every…