What is the market price of a share of stock for a firm with 100,000 shares $3,000,000, and a market-to-book ratio of 3? Multiple Choice • $90 • $105 • $10 • $30
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- 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 shareQ49 A company earns OMR 20 per share at an internal rate of 10%. The firm has a policy of paying 50% of earnings as dividends. If the required rate of return is 10%, what is the price of the share under Gordon model? a. OMR 100 b. OMR 300 c. OMR 50 d. OMR 200What is the price of a stock with an annual dividend of $30, required return on equity of 10%, and expected dividend growth rate of 7%? Select one: a. $1070 b. $960 , O c. $1015 d. $1135
- Suppose a firm has a book value of owner's equity of $1,200. This is a small firm. If there are 100 shares of stock outstanding, and the firm exhibits a market-to-book ratio of ten, what is the current stock price (Po)? O $75 O $12 O $60 O $120 O $48Q: If the nominal value of a share is 15,000 rubles, the dividend rate is 8%, and the interest rate is 5%. What is the stock price of this share? We were given this formula: Ps = (D / Ir%)* 100% The formula of the shares’ stock price : Ps- stock price; D – the dividend rate measured in money; Ir – the interest rate in %Q11 A company earns OMR 20 per share at an internal rate of 8%. The firm has a policy of paying 75% of earnings as dividends. If the required rate of return is 10%, what is the price of the share under Walter model? a. OMR 200 b. OMR 100 c. OMR 190 d. OMR 150
- Q10 The Engineering Company currently has 50,000 outstanding stocks selling at OMR 100 each. If the market price of per stock at the end of the current year is expected to be OMR 111, then what would be amount of dividend declared per share under MM model? Assume that the opportunity cost of capital is 13%. a. OMR 5 per stock b. OMR 2 per stock c. OMR 7 per stock d. OMR 3 per stockAa.2 If a company has a current stock price of $37, an EPS of $2.25/share; EPS growth rate of 15% and the investors rate of return is 15%, calculate the percentage of share value arising from growth opportunities. Multiple Choice 58.00% 58.50% 59.00% 59.50% 60.00%Q14 If the company’s Earnings available to equity shareholders are OMR 60,000, its cost of equity is 8% and overall cost of capital is 12%, what is the market value of the equity shares under Net Income Approach? a. OMR 500,000 b. OMR 750,000 c. OMR 900,000 d. Cannot be calculated
- 2 Suppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $83. Compute the percentage total return. 3 4 5 6 Initial price 7 Dividend paid 8 Ending share price 9 10 (Use cells A6 to B8 from the given information to complete this question.) 11 Input area: 12 Output area: 13 14 Total return 15 $74 $1.65 $83Q47 The Engineering Company currently has 100,000 outstanding stocks selling at OMR 100 each. The firm is also thinking of declaring a dividend of OMR 5 per share at the end of the current fiscal year. The firms opportunity cost of capital is 10%. What will be price of the stock at the end of the year assume that dividend is declared under MM model? a. OMR 105 b. OMR 115 c. OMR 110 d. OMR 100which one is correct? QUESTION 11 Exhibit 1.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) You purchased 100 shares of GE common stock on January 1, for $29 a share. A year later you received $1.25 in dividends per share and you sold it for $28 a share. Refer to Exhibit 1.7. Calculate your holding period return (HPR) for this investment in GE stock. a. 0.9655 b. 1.0973 c. 1.0804 d. 1.0086 e. 1.0357