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3. Marc & Musk Inc. has made a $100million profit (net income) in 2021. It has 50 million common stocks outstanding and the market price
3. Marc & Musk Inc. has made a $100million profit (net income) in 2021. It has 50 million common stocks outstanding and the market price is $40 per share as of 4/18/2022. The company announced that it will pay out $30 million as cash dividends to its common stockholders. That is, each share of stock will get $0.60 dividends. The company's ROE is 20%. The risk free rate is 1.8% and the stock has a beta of 2. What is the stock's dividend payout ratio? A. B. C. D. E. 25% 60% 14% 30% None of the above 4. Go back to problem 3 above. What is the stock's TTM PE ratio? A. C. 60 45 | 39 20 None of the above D. E. 5. Go back to problem 3 above. What is the company's sustainable growth rate or SGR? a. 25% b. 60% C. 14% D. 30% E. None of the above 3. Marc & Musk Inc. has made a $100million profit (net income) in 2021. It has 50 million common stocks outstanding and the market price is $40 per share as of 4/18/2022. The company announced that it will pay out $30 million as cash dividends to its common stockholders. That is, each share of stock will get $0.60 dividends. The company's ROE is 20%. The risk free rate is 1.8% and the stock has a beta of 2. What is the stock's dividend payout ratio? A. B. C. D. E. 25% 60% 14% 30% None of the above 4. Go back to problem 8 above. What is the stock's TTM PE ratio? 60 A. B. C. D. E. 45 39 20 None of the above 5. Go back to problem 8 above. What is the company's sustainable growth rate or SGR? a. 25% b. 60% C. 14% D. 30% E. None of the above
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