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

Question

1 Approved Answer

P/E and Growth Daisy Pixie Stix pays out 65% of its earnings as dividends. The firm has been earnings $0.10 cents per dollar of equity

P/E and Growth Daisy Pixie Stix pays out 65% of its earnings as dividends. The firm has been earnings $0.10 cents per dollar of equity invested in the firm and investors require a 8.00% return. The last annual earnings were $2.00 per share. What is the P/E ratio of the stock?

28.56

36.65

14.44

23.11

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

Step: 3

blur-text-image

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

Enterprise Applications And Services In The Finance Industry

Enterprise Applications And Services In The Finance Industry

Authors: Artur Lugmayr

1st Edition

331928150X,3319281518

More Books

Students also viewed these Finance questions

Question

★★★★★
(Two Differences, One Rate, First Year) The differences between the book basis and tax basis of the assets and liabilities of Morgan Corporation at the end of 2010 are presented below. It is...

Answered: 1 week ago

Question

★★★★★
two guys opened an ice cream shop in Eugene. It was a big success, so they decide to open a ice cream shops in many cities including Portland. They hire Dante to manage the shop in Portland. Jen and...

Answered: 1 week ago

Question

★★★★★
3. Sambot Ltd., a micro-enterprise, will receive US$50,000 five years from now. If the interest rate is 24 %, what is the present value of the amount to be received? Assuming compounding takes place...

Answered: 1 week ago

Question

★★★★★
Tucki Co. receives $240,000 when it issues a $240,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments...

Answered: 1 week ago

Question

★★★★★
Halliford Corporation expects to have earnings this coming year of $2.717 per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm...

Answered: 1 week ago

Question

★★★★★
In a heat exchanger with steam outside the tubes, a liquid gets heated to 4 5 C , when its flow velocity in the tubes is 2 m / s . If the flow velocity is reduced to 1 m / s , other things remaining...

Answered: 1 week ago

Question

★★★★★
Question 1: Review the case study below and answer the five questions. Eddie Turner was elated with the good news that he was being promoted to section supervisor in charge of scheduling all...

Answered: 1 week ago

Question

★★★★★
2019 Quarter 3 2020 Quarter 2 Real GDP Potential GDP Billions of 2012 Dollars Billions of 2012 Dollars 19,112.65 17,258.21 19,064.06 19,340.19 Let us analyze the effect of 2020 Covid-19 pandemic on...

Answered: 1 week ago

Question

★★★★★
Ryan Ross (111-11-1112), Oscar Omega (222-22-2223), Clark Carey (333-33-3334), and Kim Kardigan (444-44-4445) are equal active members in ROCK the Ages LLC. ROCK serves as agent and manager for...

Answered: 1 week ago

Question

★★★★★
Conduct internal (Walmart) and external research to identify some of the common performance reports used in your Walmart store or business. Choose one Walmart report that contains indicators...

Answered: 1 week ago

Question

★★★★★
Western companies flooded into China when it opened its doors and allowed them to compete for market share in all sorts of industries. Yet after several years, many of these same companies have...

Answered: 1 week ago

Previous Question Next Question