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Vitek1552 [10]
3 years ago
13

The market capitalization rate on the stock of Aberdeen Wholesale Company is 12%. Its expected ROE is 14%, and its expected EPS

is $3. If the firm's plowback ratio is 80%, its P/E ratio will be _________.
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
7 0

Answer:

100

Explanation:

The market capitalization rate is 12%

= 12\100

= 0.12

Its expected ROE is 14%

= 14/100

= 0.14

The expected EPS is $3

The Plow back ratio is 80%

= 80/100

= 0.8

The first step is to calculate the dividend payout ratio

= 1-0.8

= 0.2

The expected dividend can be calculated as follows

=0.8×3

= $2.4

The growth rate can be calculated as

follows

= 0.8×0.14

= 0.112×100

= 112%

The value can be calculated as follows

= 2.4/0.12-0.112

= 2.4/0.008

= 300%

Therefore, the P/E ratio can be calculated as follows

= 300/3

= 100

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The Central Bank is trying to increase money supply.

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Answer: Posters promoting good security behavior and designated mailing list.

Explanation:

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On September 11, 2016, Home Store sells a mower for $450 with a one-year warranty that covers parts. Warranty expense is estimat
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Answer:

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Sept, 11           Cash                                             $450  

2016         Sales                                                               $450  

                (To record the Cash Sales)

Sept, 11        Warranty Expenses                         $40.50  

2016              ($450 x 9%)

                  Estimated Warranty Payable                   $40.50  

                 (To record the Warranty Expenses)    

July, 24       Estimated Warranty Payable             $32

2017             Repairs Parts Inventory                                       $32

             (To record the material taken from Inventory)

6 0
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Answer:

a. budget constraint intersects the vertical axis at 25 beers.

Explanation:

A budget constraint shows all the combinations that a consumer might purchase of two given products or services. The total consumption can be represented by a consumption possibilities frontier curve:

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andreev551 [17]

Answer: go over your credit card limit

Explanation:if you go over your credit card limit you now owe more money to the bank.

3 0
3 years ago
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