encesThe current price of Parador Industries stock is $71 per share. Current earnings per share are $4.60, the earnings growth rate is 4percent, and Parador does not pay a dividend. The expected return on Parador stock is 22 percent.a. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.)Earning per shareb. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.)P/E ratio

Current Earnings Per Share (EPS) = $4.60Future EPS = Current EPS × (1 + g)nHere,g is the constant…

tes The current price of Parador Industries stock is $71 per share. Current earnings per share are $4.60, the earnings growth rate is 4 percent, and Parador does not pay a dividend. The expected return on Parador stock is 22 percent. 6. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Earning per share b. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio

tes The current price of Parador Industries stock is $71 per share. Current earnings per share are $4.60, the earnings growth rate is 4 percent, and Parador does not pay a dividend. The expected return on Parador stock is 22 percent. 6. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Earning per share b. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 6P

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