You have found the following historical information for the Daniela Company: Stock price EPS Year 1 $49.24 Year 2 $67.43 Year 3 $61.19 Year 4 $67.07 2.59 2.65 2.82 2.81 Earnings are expected to grow at 8 percent for the next year. What is the PE ratio for each year? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year 1 Year 2 Year 3 Year 4 What is the average PE ratio over this period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Average PE Using the company's historical average PE as a benchmark, what is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target price

You have found the following historical information for the Daniela Company: Stock price EPS Year 1 $49.24 Year 2 $67.43 Year 3 $61.19 Year 4 $67.07 2.59 2.65 2.82 2.81 Earnings are expected to grow at 8 percent for the next year. What is the PE ratio for each year? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year 1 Year 2 Year 3 Year 4 What is the average PE ratio over this period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Average PE Using the company's historical average PE as a benchmark, what is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target price

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 1IEE

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You have found the following historical information for the Daniela Company over the past four years: Year 2 Year 3 Stock price EPS Year 1 $ $62.12 $71.34 $65.25 52.50 2.80 2.92 3.20 3.45 Year 4 Earnings are expected to grow at 21 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price one year from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target stock price
The following information was available for the year ended December 31, 2022: Dividends per share Earnings per share 1.35 3.00 28.20 Market price per share at year-end Required: a. Calculate the price/earnings ratio for 2022. Note: Round your answer to 2 decimal places. b. Calculate the dividend payout ratio for 2022. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). c. Calculate the dividend yield for 2022. Note: Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). a. Price/Earning ratio b. Dividend payout ratio c. Dividend yield % Ji di %
You have found the following historical information for the Daniela Company: Stock price EPS Year 1 $48.09 2.54 Target price Year 2 $ 64.22 2.60 Year 3 $ 62.94 2.77 Year 4 $65.62 2.76 Earnings are expected to grow at 9 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Based on five years of monthly data, you derive the following information for the companies listed: Company a (Intercept) Intel 0.24 11.00 % 0.67 Ford 0.13 13.60 0.20 Anheuser Busch 0.16 6.40 0.69 Merck 0.06 10.20 0.60 SAP S00 0.00 4.50 1.00 a. Compute the beta coefficient for each stock. Do not round intermediate calculations. Round your answers to three decimal places. Entel: 5.091 X Ford: 0.538 X Anheuser Busch: 2 X Merck: 2 X
A company expects EPS to be $2.52 next year. The industry average P/E ratio is 23.99 and Enterprise multiple is 7.57. The EBITDA for the company is $22.97 million. What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.
Using the information for Hickory Fast Foods Inc. presented in the table below, determine the following: 1. Percentage of change in the stock's price since the beginning of the year. 2. Difference between the closing price today and the closing price on the previous trading day. 3. Price-earnings ratio. Year-to-Date % Change 12.13% EPS $2.27 52-Week Hi $51.78 PE Ratio 20.30 52-Week Lo $32.59 Volume 3,000,000 Dividend $0.55 Close Price $46.09 Yield Percentage 1.19% Net Change 0.42 1. Percentage of change: ? 2. Difference: 3. Price-earnings ratio: %24
Note: Please answer this question only by typing your answers in the typing space available for this question Assume that the annual rates of return for two stocks (Reliance and Wipro) for the past 5 years are as given below: Year 2 3 4 5 Reliance 35% 11% -7% -12% 24% Wipro 28% 7% -11% 15% -5% Based on the above information answer the following questions: (a) Compute the arithmetic mean of the annual rate of return for each stock. Which stock is preferable by this measure? (b) Compute the geometric mean of the annual rate of return for each stock. Which stock is preferable by this measure? (c) Compute the standard deviation of the annual rate of return for each stock. Which stock is preferable by this measure?
Based on five years of monthly data, you derive the following information forthe companies listed: Company SDi rm Padma 11.10% 0.82 Meghna 12.60% 0.63 Jamuna 6.60% 0.45 Karnafully 9.70% 0.70 SD on Market 7.60% 1.00 Plot the following estimated returns for the nest year on the SML and indicate which stocks are undervalued or overvalued.a. Padma – 22 percentb. Meghan – 17 percentc. Jamuna – 16 percentd. Karnafully – 12 percent.
Here are alphas and betas for Company X and Company Y for the 60 months ending April 2019. Alpha is expressed as a percent per month. A month later, the market is up by 5%, X is up by 6% and Y is up by 3%. (3a) What is the abnormal rate of return for X and Y? ] Alpha Beta X 0.57 1.08 Y 0.46 0.65 The table below shows a condensed income statement and balance sheet for a plant. Income Statement Assets at 31 December 2018 Revenue 56.66 Net working capital 7.08 Raw materials cost 18.72 Operating cost 21.09 Depreciation Investment plant & equipment 69.33 4.50 Less accumulated depreciation Net plant & equipment 21.01 Pretax income 12.35 48.32 Tax at 35% 4.32 Net income 8.03 Total assets 55.40 (3b) Calculate the plant's EVA. Assume the cost of capital is 9%. (3c) Assume now that the plant could be sold to another company for $95 million. How should this fact change your calculation of EVA? Explain your answer
Sunset Corporation currently has an EPS of $2.38, and the benchmark PE for the company is 17. Earnings are expected to grow at 7.5 percent per year. a. What is your estimate of the current stock price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the target stock price in one year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. Assuming the company pays no dividends, what is the implied return on the company's stock over the next year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.2. a. Stock price today b. Stock price in one year c. Implied return
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 18 percent, 11 percent, −1 percent, 2 percent, and 11 percent. What is the geometric return for Cherry Jalopies, Inc.? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Meridian Manufacturing, Inc.'s stock has had the following annual returns over the past 5 years: +14.2%; -9.8%. +32.6%, -19.8%, and +27.9%. Using the proper method for calculating investment returns, what is the 5-year return on Meridian Manufacturing's stock? ROUND YOUR ANSWER TO ONE DECIMAL PLACE, AND DO NOT ENTER THE PERCENT SIGN (i.e. 10.5% should be entered as 10.5)