Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Feb 28, 2020

Assuming Ivanhoe Corp. has an ROE of 13% and investors require a 12% return on shares, estimate the firm's P/E ratio and market price given

Assuming Ivanhoe Corp. has an ROE of 13% and investors require a 12% return on shares, estimate the firm's P/E ratio and market price given an EPS of $2.50 and a 45% payout ratio.

Step by Step Solution

★★★★★

3.46 Rating (149 Votes )

There are 3 Steps involved in it

Step: 1

Solution Price Earning multiple 1ROE Price Earning multiple11376923 t... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

9th Edition

73530700, 978-0073530703

More Books

Students also viewed these Finance questions

Question

★★★★★

A firm has an ROE of 3%, a debt-to-equity ratio of .5, a tax rate of 35%, and pays an interest rate of 6% on its debt. What is its operating ROA?

Answered: 1 week ago

Question

★★★★★

A firm has an ROE of 3%, a debt/equity ratio of 0.5, a tax rate of 35%, and pays an interest rate of 6% on its debt. What is its operating ROA?

Answered: 1 week ago

Question

★★★★★

A firm has an ROE of 10 percent. The industry average ROE is 15 percent. How can the DuPont system of analysis help the firms managers identify the reasons for this difference?

Answered: 1 week ago

Question

★★★★★

Assume that n is a positive integer. For each of the following algorithm segments, how many times will the innermost loop be iterated when the algorithm segment is implemented and run? 1) for k:=1 to...

Answered: 1 week ago

Question

★★★★★

Review Eqs. (7.12) through (7.14) and explain which of these expressions can be applied to incremental forming.

Answered: 1 week ago

Question

★★★★★

4 recognise the limitations of the main investment appraisal techniques;

Answered: 1 week ago

Question

★★★★★

3. Give parents a copy of the Guidelines: Becoming an Expert Student , rewritten for your grade level.

Answered: 1 week ago

Question

★★★★★

Following is the unadjusted trial balance for Alcorn Institute as of December 31, 2011, which initially records prepaid expenses and unearned revenues in balance sheet accounts. The Institute...

Answered: 1 week ago

Question

★★★★★

Please write a shell script called diskusage that displays the information about the disk usage with the current date, your home directory, the disk usage by your home directory, and the capacity of...

Answered: 1 week ago

Question

★★★★★

An important part of planning manufacturing capacity is having a good forecast of sales. Elizabeth Burke is interested in forecasting sales of mowers and tractors in each marketing region as well as...

Answered: 1 week ago

Question

★★★★★

For AGI and From AGI see calculations below Alice (age 46) and Bruce Byrd (age 48) are married, live in Oklahoma, and file a joint return. Alice is the office manager for Smiles Dental Clinic and...

Answered: 1 week ago

Question

★★★★★

Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $285,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the...

Answered: 1 week ago

Question

★★★★★

Was it ethical for Kaufmann to try to back out of the contract? Was it ethical for the buyer to sue for specific performance when the seller had "change of heart" and no longer wanted to sell?

Answered: 1 week ago

Question

★★★★★

An automobile assembly line operates for two shifts aday.Thefirst shiftaccountsfortwo-thirds oftheover-all production. The task of quality control engineers is to monitor the number of...

Answered: 1 week ago

Question

★★★★★

Safe or not, he made it up the tower; since he is, after all, a warrior. The ransom note read: "If you wish to see Princess Eva alive, bring all the diamonds from the royal treasury to the Kingdom of...

Answered: 1 week ago

Question

★★★★★

There are 7 Code-A-Pillar command blocks; 3 left, 2 straight, 1 right, and 1 sound. 3 blocks were chosen at random for the Code-A-Pillar. What is the probability that the 2 straights were chosen for...

Answered: 1 week ago

Question

★★★★★

Answer all please In reimbursing the petty cash fund: A) Cash is debited. B) Petty Cash is credited. C) Petty Cash is debited. D) Appropriate expense accounts are debited. E) No expenses are...

Answered: 1 week ago

Question

★★★★★

Velshi Printers has contracts to complete weekly supplements required by fortysix customers. For the year 2018, manufacturing overhead cost estimates total $600,000 for an annual production capacity...

Answered: 1 week ago

Question

★★★★★

Consider the following information about a risky portfolio that you manage, and a risk-free asset: E(rP) = 11%, P = 15%, rf = 5%. a. Your client wants to invest a proportion of her total investment...

Answered: 1 week ago

Question

★★★★★

Suppose that the price of corn is risky, with a beta of .5. The monthly storage cost is $.03, and the current spot price is $2.75, with an expected spot price in 3 months of $2.94. If the expected...

Answered: 1 week ago

Question

★★★★★

Jeffrey Bruner, CFA, uses the capital asset pricing model (CAPM) to help identify mispriced securities. A consultant suggests Bruner use arbitrage pricing theory (APT) instead. In comparing CAPM and...

Answered: 1 week ago

Question

★★★★★

4. How does light reset the biological clock?

Answered: 1 week ago

Question

★★★★★

9. Why do most antihistamines make people drowsy? 10. What would happen to the sleepwake schedule of someone who lacked orexin?

Answered: 1 week ago

Question

★★★★★

21. How does L-dopa relieve the symptoms of Parkinsons disease?

Answered: 1 week ago

Previous Question Next Question