Suppose that a firm’s recent earnings per share and dividend per share are $2.50 and $1.50, respectively. Both are expected to grow at 9 percent. However, the firm’s current P/E ratio of 24 seems high for this growth rate. The P/E ratio is expected to fall to 20 within five years.
Compute the dividends over the next five years.
Compute the value of this stock in five years.
Calculate the present value of these cash flows using an 11 percent discount rate.
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Business, 22.06.2019 18:00, firesoccer53881
If you would like to ask a question you will have to spend some points
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Business, 22.06.2019 21:00, legazzz
Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations.
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Business, 22.06.2019 23:10, jazare05
Jake and janelle loved to prepare gourmet meals for friends and family. they started a business of preparing theme-type dinners for friends who were having parties. to generate even more interest in the business, janelle created on her website. she posted pictures of events, and close-ups of the food they served. she encouraged patrons and others to post reviews, comments, and favorite recipes, and to share their own party ideas. her promotion became a dialogue between buyers of her service and the business. interactive promotion infomercials product placement broadcast
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Suppose that a firm’s recent earnings per share and dividend per share are $2.50 and $1.50, respec...
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