IFIN 384 Financial Markets and Intermediaries Graded Homework #` 1 . XYZ Inc. has earnings before interest and taxes [EBIT ) = $10 million , interest expense = $4 million , and has a 40%'s tax rate* * *Z has 1, 000 , 000 common shares outstanding at a current market price per share = $21 . 1 . What is XYZ'S EPS ?` C . What is * Y'Z's market capitalization ?" b . What is XYZ's PIE ratio ? J. XYZ pays half of its earnings as dividends : what is * Y'Z's dividend yield ? JO = DOLL 2 ABC Inc . has earnings before interest and taxes ( EBIT ) = $14 million , interest expense = $ 7 million , and has a 40%'s tax rate . ABC has 2,000, 000 common shares outstanding at a current market price per share = $18. 50 . a.| What is ABC'S EPS ?) C . What is ABC's market capitalization ? JUr -o b . What is ABC'S PIE ratio ? d. ABC pays half of its earnings as dividends : what is ABC's dividend yield ? QUAL LION = GOLD E You are trying to put a value on the common stack of IMIO , Inc . Comparable firms in the same industry have an average PIE = 19 . Comparable firms also have an average dividend yield = 1. 5% . 2. IMO'S EPS = $3 . 77 . What is the stock value using PLE ratio ?\\ AL / GOOD 6 . IMIO pays 25%'6 of its earnings out as cash dividends . Using the dividend yield , what is the stock value ? Define the term : shelf registration .* LOO OO OOOIL 5 123 preferred stock pays a $5. 25 dividend and has a required rate of return = $. 1%/6 . What is the stock worth ? 9 If LMO preferred stock is priced at $120 , and the dividend is $4. 75 , what is the required rate of return ? Init , Inc . has beta = 1 . 15 . Describe the systematic risk of Init relative to the market as a whole . JOUL J { Nell , Inc . beta = 1 . 36 . Young , Inc . beta = 1 . 03 . Which stock should promise the higher expected return and why ? Name one example of a price - weighted stock market index . Name one example of a market value - weighted index . Name one index you might follow if you are interested in small - company stocks . J ID COOL DOLL 10 . 11 . You are given the following order book for Ramones , Inc . stock :" Bell