The market capitalization rate for Admiral Motors Company is 12%. Its expected ROE is 9%. If the firm's plowback ratio is 50%, what will be its P/E ratio?  Round your answer to one decimal place.

Q: company will earn $3 per share next year and should be able to pay 25% as dividend. the company is…

A: Value of stock can be found as the present value of dividends and present value of growth in…

Q: Even Better Products has come out with an even better product. As a result, the firm projects an ROE…

A: ROE = 30%Plowback ratio (Retention ratio) = 30%Earnings this year = $2Rate of return = 14%

Q: Everrest Inc.'s stock has a 53% chance of producing a 17.00% return, a 28% chance of producing a…

A: Calculate the expected return as follows: Expected return =…

Q: sisters corp. expects to earn $6 per share next year. the firms roe is 14% and its plowback ratio is…

A: The problem involves determining the price using the Dividend Growth Model. The dividend growth…

Q: Premier Corporation has an ROE of 15.6 percent and a payout ratio of 25 percent. What is its…

A: Sustainable Growth Rate (SGR) is the maximum growth rate that a company can sustain without…

Q: m expects EPS of $1.50 for the end of period and expect to mantain a dividend payout ratio of 60%.…

A: In this we have to determine the price of equity from P/E ratio and than calculate growth rate and…

Q: ARN has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and…

A: Present value of growth opportunity is a valuation techniques which determines the price of the…

Q: If the continuous annual risk-free rate is 5% and Apple is going to pay a $3 dividend once per year…

A: The forward price is the agreed-upon price at which parties commit to buy or sell an asset in the…

Q: Qantas Airways Ltd. currently has an EPS of $3.33 and an earnings growth rate of 11 per cent. If the…

A: Earnings per share in year 9  = Earnings per share in year 0 (current year) ×(1+growth rate) ^n…

Q: The monthly demand of you firm equals you I'd 26166 .The safety stocks level equals 1000 and lead…

A: Re-Order Point = Expected demand during lead time + Safety stock Or Re-Order Point = (Daily demand x…

Q: 2.  The Hall Dental Supply Company sells at $32 per share, and Randy Hall, the CEO of this…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: A certain company has expected next year earnings per share of $6. If the company wants to reinvest…

A: The question is based on the concept of Stock valuation

Q: the required rate of Enterprises assuming that inv ors expect a 3. riation in the ture. The real…

A: In this we have to calculate the required rate by CAPM formula.

Q: The Bank of America is considering its dividend policy. It can either choose to pay a total dividend…

A: Value of Stock = Present value of cash flows  Required return is 15% per annum i.e 3.75% per quarter

Q: You want to value the company Marks and Spencer Group Plc. You project the dividends over 10 years…

A: Here,Cost of Equity is 7.5%Details of Expected Dividend is as follows:YearsDividend1 £…

Q: The index for the S&P 500 was 4000 for the year 2022, and had a growth of 3% every year for the…

A: The concept of beta plays a fundamental role in the field of finance, particularly in the assessment…

Q: A company projects a rate of return of 20% on new projects. Management plans to plow back 20% of all…

A: Since more than three parts are asked at a time, the answer for first three sub-parts is only…

Q: Establish the fair price for SYMC given the following information: SYMC is expected to grow its…

A: The value of a stock is ascertained by discounting the values of the dividends forecasted (till the…

Q: El Nino Sprinkler Systems has a 25% ROE based on beginning equity and a 45% payoutratio. At what…

A: The sustainable growth rate is calculated below:

Q: Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.4%…

A: Nominal risk-free rate: It refers to that return that is free from inflation adjustment. It is…

Q: , what is the present value of its growth opportunities?

A: Earnings per share, E = $12Plowback Ratio, b = 60%Dividend Payout Ratio = 100 – Plowback Ratio = 100…

Q: Analysts are projecting that Halyk Bank will have earnings per share of 3.55. If the average…

A: The most recent price with which a security was traded on an exchange is the current price. Buyers…

Q: The risk-free rate of return is 5%. The market risk premium is 5%. The beta of Mondelez…

A: The problem requires calculating WACC which is based on the cost of equity and the cost of debt. The…

Q: Castles in the Sand generates a rate of return of 20% on its investments and maintains a plowback…

A: Rate of return = 20% Plowback ratio = 20% (Retention ratio) Earnings per share = $2 Expected rate of…

Q: Determine your optimal asset allocation among ETFUS , ETFCDA , and T-bill, in percentage and in…

A: The optimum portfolio is when the sharpe ratio is maximum.   Returns Standard deviations…

Q: Even Better Products has come out with an even better product. As a result, the firm projects an ROE…

A: Given:EPS = $2plowback ratio = b = 0.4 ROE = 20%Expected…

Q: The market capitalization rate for Admiral Motors Company is 10%. Its expected ROE is 15% and its…

A: market capitalization rate = r = 10%Return on Equity = ROE = 15%Earning Per Share = EPS = $7plowback…

Q: Everrest Inc.'s stock has a 53% chance of producing a 14.25% return, a 25% chance of producing a…

A: Stock: A kind of investment that are made by the investors, in order to get more returns is referred…

Q: ABC Corp. has a beta of 0.7. The risk-free rate is 6 percent and the expected return on the market…

A: Beta = 0.7 Risk Free Rate = 6% Expected Return on market = 13%   Project Beta = 1.2 Annual Payment =…

Q: 2.  The Hall Dental Supply Company sells at $32 per share, and Randy Hall, the CEO of this…

A: Given Information: Current price is $32 EPS is $4 Dividend payout ratio is 50%

Q: 3) It is now Jan 1, 2016. You have analyzed DuckCo's future product launches, markets, and…

A: Free cash flow method is used to evaluate the value of the firm and with which we can determine the…

Q: The rate of return on T-bills is 3.25% and the expected return on the market is 9.50%. J&X, Inc. had…

A: The risk-free rate of return is the ideal rate of return on a risk-free investment. In principle,…

Q: Your firm currently has net working capital of $115,000 that it expects to grow at a rate of 4.0%…

A: Net working capital is the difference between the current assets and current liabilities and is…

Q: If the Synyster Corp. has an ROE of 17 percent and a payout ratio of 25 percent, what is its…

A: Retention ratio = 1- Dividend payout ratio Retention ratio = 1- 25% Retention ratio = 75%

Q: outlook for the comin Compute the expected rate of retum E(R) for Lauren Labs. Round your answer to…

A: Expected return is the sum of product between the possible returns and their corresponding…

Q: Packaging Corporation of America (PKG) ‒ That’s right. They make cardboard boxes and shipping…

A: Stock valuation is the process of determining the intrinsic value of a company's stock. It involves…

Q: Everrest Inc.'s stock has a 46% chance of producing a 12.00% return, a 30% chance of producing a…

A: Formula: Expected return = Probability * return

Q: You forecast to have a ROE of 14%, and dividend payout ratio of 12%. Currently the company has a…

A: PEG ratio is the ratio of price by earning divided by growth of earning . formula: PEG=P/E…

Q: Here are data on two companies. The T-bill rate is 5.6% and the market risk premium is 7.1%. Company…

A: A financial framework employed to estimate an asset's anticipated rate of return is termed the…

Q: Calculate the intrinsic value of Toyota in each of the following scenarios by using the three-stage…

A: To calculate the intrinsic value of Toyota in scenario A using the three-stage growth model, we need…

Q: You forecast a company to have a ROE of 15%, a dividend payout ratio of 30%. The company has a beta…

A: PE ratio is a relationship between current market price of share and earning per share.

Q: 7. Lumen Power & Light Inc. is currently has a PEG ratio of 20 and the consensus analysts' forecast…

A: PEG ratio = 20 Growth rate = 10

Q: A start-up technology company has projected earnings per share of $4.50. If the average technology…

A: P/E ratio is a metric used to gauge how much an investor pays for 1-dollar earnings of the company.…

Q: Jensen Corp. has an expected excess return of 3% for the coming year. The company's beta is 0.8 and…

A: Step 1 A financial model used to determine an asset's expected rate of return is known as the…

Q: The U.S. risk-free rate is currently 4 percent. The expected U.S. market return is 11 percent.…

A: Risk free rate = 4% Market return = 11% Beta = 1.50

Q: If the value of sustainable investing is $158.7 and the discount rate is 5.8% while the value of…

A: Here,Value of Sustainable Investment is $158.7Value of Non-Sustainable Investment is $22.81Expected…

Q: XYZ Corp. is anticipating a sustained growth rate of 15% per year. Is it possible for them to…

A: The dividend payout ratio indicates profits that are delivered to shareholders as dividends. The…