FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Joker stock has a sustainable growth rate of 9 percent, ROE of 17 percent, and dividends per share of $1.55. If the P/E ratio is

Joker stock has a sustainable growth rate of 9 percent, ROE of 17 percent, and dividends per share of $1.55. If the P/E ratio is 15.5, what is the value of a share of stock? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Share of stock $______

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image_2

Step: 3

blur-text-image_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

Elliot Wave Techniques Simplified How To Use The Probability Matrix To Profit On More Trades

Elliot Wave Techniques Simplified How To Use The Probability Matrix To Profit On More Trades

Authors: Bennett A. McDowell

1st Edition

0071819304,0071819312

More Books

Students also viewed these Finance questions

Question

★★★★★
Prepare a July 31 bank reconciliation statement and the resulting journal entries for the Simmons Company. The July 31 bank statement indicated a cash balance of $9,610, while the cash ledger account...

Answered: 1 week ago

Question

★★★★★
13. Capital budgeting options [LO 24.5] In Critical thinking question 7 in Chapter 10, we discussed Porsches launch of its new Cayenne. Suppose sales of the Cayenne go extremely well and Porsche is...

Answered: 1 week ago

Question

★★★★★
Describe standard window-washing procedures.

Answered: 1 week ago

Question

★★★★★
A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2013. The last two columns contain the adjusted trial balance as...

Answered: 1 week ago

Question

★★★★★
Your father has made you a promise. He promises you $6,000 one year from today. In addition, each year after that, he has promised you a payment (on the anniversary of the last payment) that is 1%...

Answered: 1 week ago

Question

★★★★★
Consider the woman doing push-ups in the figure. She has a mass of 57.3 kg, and the distance from her feet to her center of mass is 0.89 m, while the distance from her feet to her hands is 1.55 m....

Answered: 1 week ago

Question

★★★★★
Three people independently play some game against a common opponent, once each. A has probability of winning, B has probability 1/3 of winning, C has probability of winning. The probability that at...

Answered: 1 week ago

Question

★★★★★
for the scenario: The student will submit possible interventions based on the assessment results (can be any combination of antecedent or consequent based strategies). Also, students will submit a...

Answered: 1 week ago

Question

★★★★★
Letterman & Sons Ltd. provides you with the following figures for the year 2017. Sales (in units): 1st Quarter Product A Product B 1,250 1,600 IInd Quarter 2,950 800 IIIrd Quarter IVth Quarter 2,700...

Answered: 1 week ago

Question

★★★★★
Number Frequency 1 2 3 4 5 16 20 20 25 14 29 29 A die is thrown 132 times with the following results: 6 28 180

Answered: 1 week ago

Question

★★★★★
1/What rate of return should be required on the Bharti Airtel share, which has a of 0.7, if the Rio Tinto share, which has a 3 of 1.1, returns 10% and is correctly valued, and the rate of a risk-free...

Answered: 1 week ago

Previous Question Next Question