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Mariulka [41]
4 years ago
11

perline, inc., has balance sheet equity of $6.2 million.At the same time, the income statement shows net income of $948600. The

company paid dividends of $493272 and has 100000 shares of stock outstanding. If the benchmark PE ratio is 26, what is the target stock price in one year?
Business
1 answer:
ikadub [295]4 years ago
5 0

Answer:

The target stock price in one year is $264.75

Explanation:

We first calculate the ROE as below

ROE= Earnings / Book value of Equity

ROE= $948,600 / $6,200,000

ROE= 0.153

The payout ratio is:

b=  Dividend / Net income

b = $493,272 / $948,600

b = 0.52

So the sustainable growth rate is:

g = ROE * (1-b)

g = 0.153 * (1-0.52)

g = 0.153 * 0.48

g = 0.07344

The earning in the first year are

EPS1 = $948,600 / 100,000  * (1 + 0.07344)

EPS1 = $9.486 * 1.07344

EPS1 = $10.1827

According to the benchmark PE ratio, the target stock price in one year is

Price = EPS1 * 26

Price = $10.1827 * 26

Price = $264.75

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Mademuasel [1]

Answer: Participation

Explanation:

Participation financing is a firm of financing whereby a loan is shared by several parties because such loans are too huge and a party cannot take the loan alone.

Since we are informed that works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position, this means that participation financing is being practiced.

7 0
3 years ago
A thief steals an ATM card and must randomly guess the correct three​-digit pin code from a 9​-key keypad. Repetition of digits
Dennis_Churaev [7]

Answer:

The thief has a 0.11% probability of hitting the pin code on the first try.

Explanation:

Simply, if the ATM card has a 3-digit code that can be repeated, and the board has 9 numbers (for example, from 1 to 9), we must start from the smallest number that could be formed with these numbers to the highest number that these numbers could also compose, which in the case would be 111 and 999. Then, 889 different numbers could be formed (it is the distance between 111 and 999), with which the possibility of hitting the key to the first attempt would be 1 in 889 times, or 1/889.

To take the probability to a percentage, we must know that 889 / 8.89 gives 100. Therefore, dividing 1 / 8.89 we will know the percentage of probabilities of hitting the key on the first attempt: 1 / 8.89 = 0.11.

This shows us that the thief has a 0.11% probability of hitting the key on the first try.

7 0
3 years ago
Who did publisher Henry Luce credit with the provision of “the abundant life” in his blueprint for postwar prosperity, The Ameri
Ratling [72]

Answer:

The correct answer is d. Free enterprise.  

Explanation:

Henry Robinson Luce was known as an American publisher and journalist. They gave him the name of  "the most influential private citizen in the America of his day". This magnate published  what is called “The American Century.” “The American Century” also showed “the vision of America as the dynamic leader of world trade,” and this guy Henry Luce could not have fathomed any economic basis for national leadership besides “free enterprise.”

8 0
3 years ago
Shantel has a checking account balance of $318.59. She wrote a check to United farmers Market for $52.17. What is Shantel's new
AlladinOne [14]

Answer:

$266.42

Explanation:

$318.59-$52.17=$266.42

6 0
3 years ago
Jacqueline is in the market for a new laptop. She has spent quite a bit of time gathering information and thinking about the pur
aalyn [17]

Based on the fact that Jacqueline had to spend time to research before she made her decision, she is most likely an<u> early majority.</u>

<h3>Who are the early majority?</h3>

These are people who buy a good around the same time as most people but not too log after a product has been released.

They tend to embark on a lot of research before they make a decision which is what Jacqueline is doing.

Find out more on the early majority at brainly.com/question/15858673.

#SPJ1

8 0
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