Answer:
* The stock price in five years if the P/E ratio remained unchanged: $33.64
* The price be if the P/E ratio increased to 22 in five years: $37.77.
Explanation:
As the dividend has been growing at 7.25% each year in the next five years, earnings per share in the next five years should grow at the same rate, and earnings per share in year five will be: 1.21 x (1+7.25%)^5 = $1.717.
* The stock price in five years if the P/E ratio remained unchanged will be equal to:
Earning per share in the next five years x Current P/E ratio = 1.717 x 19.59 = $33.64
* The price be if the P/E ratio increased to 22 in five years will be equal to:
Earning per share in the next five years x New P/E ratio = 1.717 x 22 = $37.77.
Answer:
b. 22.38
Explanation:
The credit period to pay for merchandise is 45 days, sales for last year = $325,000, therefore sales/day (daily sales) = $325,000/365 = $890.41
Year-end receivables = $60,000
Company DSO = Year-end receivables/ daily sales = $60000/$890.41 = 67.38
The difference between the Company DSO and credit period determines if the payment is early or late. A positive answer indicates late payments, while a negative answer indicates early payments.
Therefore, Company DSO - credit period = 67.38 - 45 = 22.38
Since the difference is positive, it is a late payment
Answer:
10.65%.
Explanation:
Calculation to determine what The current yield on this bond is
First step is to determine the Present value (PV) using Financial calculator
FV = 1000
n = 4
PMT =10%*$1,000= 100
i = 12
PV=?
Hence,
PV = 939.25
Now let determine the Current yield
Current yield = $100/$939.25
Current yield = 10.65%
Therefore The current yield on this bond is 10.65%
Answer:
B. has a higher market price per dollar of earnings than does one share of Turner's.
Explanation:
Securities is the investment of money in a common enterprise with profits earned largely from efforts of others.
<h3>What is Securities?</h3>
Security refers to negotiable financial instrument holding monetary value. It represents ownership in a corporation in the form of stock, a creditor relationship with a governmental body or a corporation represented by owning that entity's bond.
The Supreme Court established four criteria for an investment contract:
1. An investment of money
2. In a common enterprise
3. With the expectation of profit
4. To be derived from the efforts of others
Thus, security is a investment contract ,where the investment of money is in a common enterprise and the profits are derived by the efforts of others.
To learn more about securities click here: brainly.com/question/28070333
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