Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Name FINC 298 Learning Activity 7 & 8 Now determine your average annual return (after taxes and inflation) on FMC. Assume a marginal tax rate
Name FINC 298 Learning Activity 7 & 8 Now determine your average annual return (after taxes and inflation) on FMC. Assume a marginal tax rate of 33% and a rate of inflation over the 4-year period of 2.75% per year. (A 33% marginal tax bracket consumer would be taxes 15% for both dividends and capital gains). 6. You owned 1200 shares of Jumba Juice (JMBA) on the first of January 2013 when it was selling for $30 per share. ON June 3, 2013 Jamba had a 2 for 1 stock split. How many share do you now own, and what would be the expected price per share? 7. The present market price of a stock is $20, and the earnings per share (EPS) are $1.50. Therefore, the price earnings ratio is 13.33. An 8% annual growth rate in earnings is anticipated over the next 9 years. The P/E is assumed to be the same in 9 years. What is the expected market price of the stock in 9 years? 8
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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