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a. What is the firms current book value per share? (please show work using the formulas) b. What is the firms current P/E ratio? (please
a. What is the firms current book value per share? (please show work using the formulas)
b. What is the firms current P/E ratio? (please show work using the formulas)
Data item | 2015 value | |
Earnings per share (EPS) | $8.26 | |
Price per share of common stock | $104.25 | |
Book value of common stock equity | $325,000,000 | |
Total common shares outstanding | 8,300,000 | |
Common stock dividend per share | $4.05 | |
Data Points | ||
Beta, b | Required Return, K | |
0 | 2.25% | |
.25 | 4.600% | |
.5 | 6.950% | |
.75 | 9.300% | |
1 | 11.650% | |
1.25 | 14.000% | |
1.5 | 16.350% | |
1.75 | 18.700% | |
2.0 | 21.050%
|
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