Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please I want the answers and good explanation From the following information of two companies. Company Xy P/E ratio is 14. Company Xz P/E is

image text in transcribed

please I want the answers and good explanation

From the following information of two companies. Company Xy P/E ratio is 14. Company Xz P/E is 1. The sum total of the post tax earnings of the above mentioned companies are dollar 1730195. Assume the sales $3000000 Compute the market value of two companies. Answer: The current price dollar 90, the expected dividend next year dollar 4 per share, expected price of share after two year dollar 57, the opportunity cost 0.1. What is the value share

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

International Finance Theory and Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

10th edition

978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648

More Books

Students also viewed these Finance questions