1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jenyasd209 [6]
2 years ago
5

ART has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback

ratio of 0.20. Its earnings this year will be $3 per share. Investors expect a 12% rate of return on the stock. At what P/E ratio would you expect ART to sell?
a. 8.33
b. 11.43
c. 14.29
d. 15.25
Business
1 answer:
Marianna [84]2 years ago
7 0

Answer:

b. $11.43

Explanation:

g = 25% * 0.20

g = 0.05

g = 5%

D1 = 3 * (1 - 0.2)

D1 = 3 * 0.8

D1 = $2.40

Price = D1 / Expected RR - g

Price = 2.40 / 0.12 - 0.05

Price = 2.40 / 0.07

Price = 34.28571428571429

Price = 34.30

P/E Ratio = Price / Earning per share

P/E Ratio = $34.30/$3

P/E Ratio = 11.43333333333333

P/E Ratio = $11.43

You might be interested in
Following ethical standards that have been outlined by the company you work for are___standards(apex)
Mashcka [7]

Answer:

D. organizational

Explanation:

You must focus on both your personal life and profession. Just got the question right on apex.

5 0
3 years ago
Most stock exchanges today use electronic trading. t or f
Reil [10]

Answer:

T

Explanation

mommy

7 0
3 years ago
This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,350. Last year, his total tax liability was $15
Dmitrij [34]

Answer:

Lloyd needs to increase his witholding tax to $1,560 this year in order to avoid the underpayment penalty .

Explanation:

As a rule, a citizen can maintain a strategic distance from an underpayment of punishment if their retention and evaluated assessment installment measure up to or surpass one of the two safe harbours

90% of current expense risk = 90% × $11,350

= $10,215

100% of past assessment risk = $15,900

Since his(Lloyd) retention is not equal to or exceed $10,215 or $15,900

Llyod should expand retaining or make payment this year in order to stay away from underpayment punishment

= $10,215 - $8,655

= $1,560

3 0
2 years ago
The mls is a good source for data when researching a subject property. what information will you find there?
madam [21]

The mls is a good source for data when researching a subject property. former sales price will be found there.

A multiple listing service is a database which is  established by cooperating real estate brokers in order to provide data about properties for sale.

An MLS allows the brokers to see one another’s listings of properties  held for sale with the goal of connecting homebuyers to sellers. Under this arrangement, both the listing and selling brokers are benefited by consolidating and sharing information and also by sharing commissions.

Typically, multiple listing services create a general  book and electronic database with all of the houses for sale by affiliated brokers.

To know more about MLS here:

brainly.com/question/15579742

#SPJ4

8 0
1 year ago
An unintended side effect that benefits or harms a third party not involved in the activity is:
Sauron [17]
The answer is : b. An externality

The example of an Externality is air pollution from Car emission

The air pollution is not technically covered and intended by the car manufacturing company , but it harm a third party ( civilians) who do not involved in the car production

 
8 0
3 years ago
Other questions:
  • The clarity and tone of a message are improved when you use positive and courteous language.
    15·2 answers
  • Why might a bank offer to make a loan to a customer at a low initial rate that will increase after a set period of time?
    9·2 answers
  • In a manufacturing business, the ________ transforms finished goods into cash.
    15·1 answer
  • In a Cobb–Douglas production function the marginal product of labor will increase if:
    6·1 answer
  • One of the primary reasons for the slow response to help the victims of Hurricane Katrina was the failure of assistance to arriv
    7·1 answer
  • Research shows that legal action is taken against fraud perpetrators in: Group of answer choices Almost all fraud cases. More th
    14·1 answer
  • Lowering the cost of each item produced because of high-volume production brought on by demand stimulation is
    7·1 answer
  • Fallsview Glatt Kosher Caterers ran a business that provided travel packages, including food, entertainment, and lectures on rel
    7·2 answers
  • The only way that a society can produce outside the production possibilities curve is
    9·2 answers
  • A lot of estimates go into the final calculation to determine market size, and each component needs to be as precise as possible
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!