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andrew11 [14]
3 years ago
9

Suppose that a firm's recent earnings per share and dividends per share are $3.00 and $1.50, respectively. Both are expected to

grow at 10 percent. However, the firm's current P/E ratio of 20 seems high for this growth rate. The P/E ratio is expected to fall to 16 within five years. Compute a value for this stock by first estimating the dividends over the next five years and the stock price in five years. Then discount these cash flows using a 14 percent required rate.
Business
1 answer:
Alborosie3 years ago
6 0

Answer:

$46.90

Explanation:

The dividend in each year is the previous year's dividend multiplied by the growth factor, whereas the growth factor is 1 plus the expected growth rate of 10%, the EPS in each year would also be determined in a similar manner.

Note that the stock price is the present value of its dividends for 5 years as well as the price value of its year 5 share price(year 5 EPS*year 5 P/E ratio of 16)

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It’s in the picture pleaseee I need this today
Tom [10]

Answer:

Can you please post a clearer picture

Explanation:

If you can I might be able to help.

4 0
2 years ago
5. An ATM allows a customer to withdraw a maximum of $400. If the customer withdraws more than $200, the service charge is 3% of
tankabanditka [31]

Answer:

//algorithm for ATM money withdrawal

Algorithm: Algorithm for cash withdrawals from ATM.

Input: withdraw_amount

Output: amount+service_charges.

Algorithm:

step 1:

  balance =account balance.

  withdraw_amount = (Get input from user)

 

step 2:

  if(withdraw_amount>400)

      then, print "maximum limit exceeds"

 

step 3:

  if(withdraw_amout<1)

      then, print "enter a valid amount"

 

 

step 4:

  if(withdraw_amount>balance)

      then, print "insufficient balance.. withdraw money $30 as service charges "

 

 

step 5:

  if(withdraw_amount<400 && withdraw_amount<balance)

      if(withdraw_amount>200)

          service_charge=withdraw_amount*(3/100)

          print " Your cash is dispensed... total amount withdrawn +service_charges 30% (withdraw_amount +service_charge) "

4 0
3 years ago
Taylor Company had a salaries payable balance of $18,000 on December 31, 2014. During 2015, it paid $50,000 in cash as salaries,
Flura [38]

Answer:

$18,000

Explanation:

Given data  for Taylor Company;

Salaries payable at the beginning of 2015 (end of 2014) = $18,000

Salary expense during the year (2015) = $50,000

Salaries paid during the year = $50,000

Salary payable at end of year (2015) = ?

Let the salary payable at end of year= S

Using the formula

Salaries payable at the beginning of the year + Salary expense during the year - Salaries paid = Salary payable at end of year

$18,000 + $50,000  - $50,000  =S

S = $18,000

Salaries payable as at December 31, 2015 is $18,000.

8 0
2 years ago
On January​ 1, 2019, Plenty of​ Oil, Inc. purchased an oil field that is estimated to have 20 comma 000 comma 000 barrels of oil
AysviL [449]

Answer:

$65,200,000.

Explanation:

We know,

Depreciation expense rate under unit-of-activity method = (Total cost of the asset - Residual value) ÷ Estimated usage

Therefore, Depreciation expense rate = ($80,000,000 - 0) ÷ 20,000,000 barrels of oil.

Depreciation expense rate = $80,000,000 ÷ 20,000,000 barrels of oil.

Depreciation expense rate = $4 per barrel.

As the company used 1,800,000 barrels during 2019, the depreciation expense for 2019 = 1,800,000 × $4 = $72,000,000

For 2020, the depreciation expenses = 1,900,000 × $4 = $76,000,000

Therefore, accumulated depreciation after December 31, 2020 = $72,000,000 + $76,000,000 = $14,800,000.

Therefore, book value reported on the balance sheet as of December​ 31, 2020 = $80,000,000 - $14,800,000 = $65,200,000.

3 0
3 years ago
What are complex information systems that support end-to-end business processes? Functional systems Accounting systems Enterpris
Cloud [144]

Answer:

Enterprise systems

Explanation:

Enterprise Resource planning (ERP) system has enterprise -wide integration and it is integrated end to end business departments and Business units. It interconnects different business segment or department. It helps a department / segment of business to support other departments / segments of the business.

4 0
2 years ago
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