Business, 30.11.2019 02:31 Ashesnwine9351

International flavors and fragrances, a leading creator and manufacturer of flavors and fragrances, paid out dividends of $0.91 per share on earnings per share of $1.64 in 1992. the firm is expected to have a return on equity of 20% between 1993 and 1997, after which the firm is expected to have stable growth of 6% a year (the return on equity is expected to drop to 15% in the stable growth phase.) the dividend payout ratio is expected to remain at the current level from 1993 to 1997. the stock has a beta of 1.10, which is not expected to change. the treasury bond rate is 7%.a. estimate the p/e ratio for international flavors, based upon fundamentals. b. estimate how much of this p/e ratio can be ascribed to the extraordinary growth in earnings that the firm expects to have between 1993 and 1997.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 13:50, trillsmith

Read the following paragraph, and choose the best revision for one of its sentences. dr. blake is retiring at the end of the month. there will be an unoccupied office upon his departure, and it is big in size. because every other office is occupied, we should convert dr. blake’s office into a lounge. it is absolutely essential that this issue is discussed at the next staff meeting. (a) because every other office is occupied, it’s recommended that we should convert dr. blake’s office into a lounge. (b) because every other office is filled, we should convert dr. blake’s office into a lounge.

Answers: 2

continue

Business, 22.06.2019 19:20, Gabby2581

Win goods inc. is a large multinational conglomerate. as a single business unit, the company's stock price is estimated to be $200. however, by adding the actual market stock prices of each of its individual business units, the stock price of the company as one unit would be $300. what is win goods experiencing in this scenario? a. diversification discount b. learning-curveeffects c. experience-curveeffects d. economies of scale

Answers: 1

continue

Business, 22.06.2019 22:30, josephinekiim

Luggage world buys briefcases with an invoice date of september 28. the terms of sale are 2/10 eom. what is the net date for this invoice

Answers: 1

continue

Business, 22.06.2019 22:30, ajfijeoinf2750

When the price is the equilibrium price, we would expect there to be a causing the market to put pressure on the price until it went back to the equilibrium price. a. above; surplus; upward b. above; shortage; downward c. below; surplus; upward d. below; shortage; downward e. above; surplus; downward?

Answers: 2

continue

You know the right answer?

International flavors and fragrances, a leading creator and manufacturer of flavors and fragrances,...