Castles in the Sand generates a ROE of $20\mathrm{.}5$ percent and maintains a payout ratio of $0\mathrm{.}6.$ Its earnings this coming year will be $$3\mathrm{.}78$ per share. Investors expect a return of $15\mathrm{.}06$ percent on the stock. What is the stocks $\frac{P}{E}$ ratio?

Your Answer:

Answer

Question $8(3$ points$)$

LIsten

A share of common stock just paid a dividend of $$1\mathrm{.}01.$ If the expected long$-$run growth rate for this stock is $5\mathrm{.}2\%,$ and if investors' required rate of return is $15\mathrm{.}65\%,$ what is the stock price?

Your Answer:

Castles in the Sand generates a ROE of $20\mathrm{.}5$ percent and maintains a payout ratio of $0\mathrm{.}6.$ Its earnings this coming year will be $$3\mathrm{.}78$ per share. Investors expect a return of $15\mathrm{.}06$ percent on the stock. What is the stocks $\frac{P}{E}$ ratio?

Your Answer:

Answer

Question $8(3$ points$)$

Llsten

A share of common stock just paid a dividend of $$1\mathrm{.}01.$ If the expected long$-$run growth rate for this stock is $5\mathrm{.}2\%,$ and if investors' required rate of return is $15\mathrm{.}65\%,$ what is the stock price?

Your Answer: