Question

The market capitalization rate for Admiral Motors Company is 10%. Its expected ROE is 14% and...

The market capitalization rate for Admiral Motors Company is 10%. Its expected ROE is 14% and its expected EPS is $7. The firm's plowback ratio is 60%.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The market capitalization rate on the stock of Aberdeen Wholesale Company is 13%. Its expected ROE...
The market capitalization rate on the stock of Aberdeen Wholesale Company is 13%. Its expected ROE is 15%, and its expected EPS is $6. If the firm's plowback ratio is 70%, its P/E ratio will be _________. Multiple Choice 9.23 12.00 25.73 40.00
1) Beta Corp. has a market capitalization rate of 12%, an ROE of 10% and a...
1) Beta Corp. has a market capitalization rate of 12%, an ROE of 10% and a plowback ratio of 80%. Suppose Beta. Corp decides to pay out 100% of its earnings. What will happen to its P/E ratio? 2) Alpha Corp. has a market capitalization rate of 12%, an ROE of 16% and a plowback ratio of 50%. Suppose Alpha Corp. decides to pay out 100% of its earnings. What will happen to its P/E ratio?
xyz stock has an expected ROE of 10% per year, expected earnings per share of $5...
xyz stock has an expected ROE of 10% per year, expected earnings per share of $5 and expected dividend is $2 per share. Its market capitalization rate is 12% per year. A) what are the firms price and price earnings ratio? b) If the firm increases its plowback ratio to 0.8, what would be its price and price- earnings ration? c) compare the results of A and B to explain the effect of the plowback ratio on the price- earnings...
Firm reinvests 60% of its earnings in projects with ROE of 10%, the capitalization rate is...
Firm reinvests 60% of its earnings in projects with ROE of 10%, the capitalization rate is 15%. Earnings of $5/share. The expected year-end dividend is $2/share Calculate its price us constant dividend growth model Calculate the present value of growth opportunity
Hosmer Enterprises expects to earn $4 per share next year. The firm’s ROE is 10% and...
Hosmer Enterprises expects to earn $4 per share next year. The firm’s ROE is 10% and its’ plowback ratio is 60%. If the firm’s market capitalization rate is 8%: Calculate the price if Hosmer Enterprises pays all of its earnings out as a dividend.
MF Corp. has an ROE of 18% and a plowback ratio of 50%. The market capitalization...
MF Corp. has an ROE of 18% and a plowback ratio of 50%. The market capitalization rate is 12%. a. If the coming year’s earnings are expected to be $2.60 per share, at what price will the stock sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What price do you expect MF shares to sell for in two years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Firm reinvests 60% of its earnings in projects with ROE of 10%, capitalization rate is 15%....
Firm reinvests 60% of its earnings in projects with ROE of 10%, capitalization rate is 15%. Expected year-end dividend is $2/share, paid out of earnings of $5/share. Calculate the dividend growth rate. Calculate the firm’s intrinsic value. Calculate the firm’s present value of growth per share. Why is the PVGO is negative? Is the current dividend policy a good choice? What could be done to increase its stock price?
Check the correct statement f a firm reinvests its earnings at an ROE equal to the...
Check the correct statement f a firm reinvests its earnings at an ROE equal to the market capitalization rate, then its earnings-price (E/P) ratio is equal to the market capitalization rate. The value of a share equals the present value of all future dividends per share. If a security is underpriced, then the expected holding period return is above the market capitalization rate. The value of a share equals the present value of earnings per share assuming the firm does...
Sisters Corp. expects to earn $6 per share next year. The firm’s ROE is 15% and...
Sisters Corp. expects to earn $6 per share next year. The firm’s ROE is 15% and its plowback ratio is 60%. The firm’s market capitalization rate is 10%. a. Calculate the price with the constant dividend growth model. b. Calculate the price with no growth. c. What is the present value of its growth opportunities?
Sisters Corp expects to earn $6 per share next year. The firm’s ROE is 15% and...
Sisters Corp expects to earn $6 per share next year. The firm’s ROE is 15% and its plowback ratio is 60%. If the firm’s market capitalization rate is 10%. a. Calculate the price with the constant dividend growth model. b. Calculate the price with no growth. c. What is the present value of its growth opportunities?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT