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djyliett [7]
3 years ago
14

XYZ has a current market price of $30.00 per share with earnings last year of $2.50 per share, a beta of 1.1 and a dividend of $

1.25. Using the price/earnings multiplier, what price do you expect the stock to trade at if earnings per share next year are $3.00
Business
1 answer:
Nutka1998 [239]3 years ago
8 0

Answer:

The expected price for the stock is $36

Explanation:

The price earning multiple is a measure that provides the information regarding how much are the investors willing to pay for each $1 of earnings per share. The formula for price earnings multiple is,

P/E = Price per share / Earnings per share

Based on the information, the P/E multiple for XYZ is,

P/E = 30 / 2.5   =  12

Using this price / earnings multiplier, we calculate the price at which the stock will trade as,

12 = Price per share / 3

12 * 3 = Price per share

Price per share = $36

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paid an annual dividend of $1.47 a share last month. The company is planning on paying $1.55, $1.63, and $1.65 a share over the
larisa [96]

Answer:

The market price for this stock is $15.23

Explanation:

The price per share of a stock today can be calculated using the dividend discount model which values a stock based on the present value of the expected future dividends of the stock. The value of this stock using the DDM will be,

V0 or P0 =  1.55 / (1+0.11)  +  1.63 / (1+0.11)^2  +  1.65 / (1+0.11)^3  +  

[ ( 1.7 / 0.11) / (1+0.11)^3 ]

V0 or P0 = $15.226 rounded off to $15.23

8 0
3 years ago
Read 2 more answers
Sunset Corporation (a C corporation) had operating income of $200,000 and operating expenses of $175,000. In addition, Sunset ha
sleet_krkn [62]

Answer:

Sunset Corporation's taxable income is $3,000

Explanation:

Calculation of Sunset Corporation's taxable income is as worked below

Taxable Income = Operating Income - Operating Expenses + Capital Gains - Capital Losses  

Taxable Income = $200,000 - $175,000 + $30,000 - $52,000

Taxable Income = $3,000.  Hence, Sunset Corporation's taxable income is $3,000

 

Note that taxable income is the amount of income used to calculate how much tax an individual or a company owes or is going to pay the government in a particular tax year.

4 0
4 years ago
Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six w
Kisachek [45]

Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six workers and make sure they have all the materials they need to perform their duties. Cameron is likely to experience <u>role overload.</u>

<u />

Role overload is a specific stressor that reflects the perception that the demands of a job role exceed an individual's resources (Eatough et al., 2011). Therefore, role congestion can lead to resource exhaustion. This is a phenomenon that can be understood through a COR lens.

Role overload occurs when a person plays multiple roles at the same time and does not have the resources to perform them. It can develop not only from being mentally overwhelmed but also from being overwhelmed with time.

For example, if an employee leaves the company, it may be necessary to temporarily expand the role of another employee to accommodate the absence of the absent employee.

<u />

<u />

Learn more about Cameron here: brainly.com/question/2049411

#SPJ4

7 0
2 years ago
You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took
andrew11 [14]

Answer:

$23,003

Explanation:

Computation for the claim against the insurance company.

Using this formula

Claim against insurance company = Total cost of goods available for sales - Cost of goods sold - Owned inventory on hand on July 16

Let plug in the formula

Claim against insurance company= ($41,010 + 90,490) - [($119,400 - $3,960)*100/140)] - ($33,210- $7,170)

Claim against insurance company= $131,500 - $82,457 - $26,040

Claim against insurance company= $23,003

Therefore the claim against the insurance company is $23,003

4 0
3 years ago
As a result of cash flow shortages, Millard's Department Stores has fallen behind in payments to suppliers. Some suppliers are w
aleksandr82 [10.1K]

Answer:

D. short-term financing

Explanation:

Based on the information provided within the question it seems that in this scenario Millard's Department Stores should utilize short-term financing. This is a short term loan (usually less than one year) that you can use for you daily business operations. Which is exactly what Millard's Department Store needs in order to pay off the suppliers to continue receiving payments and continue it's business operations to make money.

8 0
3 years ago
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