Question
Please show work and calculator work if necessary, thanks :) The earnings of Confinity Inc. were $6 per share last year. Its expected ROE is
Please show work and calculator work if necessary, thanks :)
The earnings of Confinity Inc. were $6 per share last year. Its expected ROE is 18% and cost of equity is 14%. It will maintain a dividend payout ratio of 60%. What is the current value of the stock?
| A. | $75 | |
| B. | $57 | |
| C. | $83 | |
| D. | $50 |
The earnings of Confinity Inc. were $6 per share last year. Its expected ROE is 18% and cost of equity is 14%. It will maintain a dividend payout ratio of 60%. What is the leading P/E ratio? Do not round your intermediate calculations.
| A. | 12.5 | |
| B. | 8.8 | |
| C. | 9.5 | |
| D. | 11.3 |
The earnings of Confinity Inc. were $6 per share last year. Its expected ROE is 18% and cost of equity is 14%. It will maintain a dividend payout ratio of 60%. What is the present value of growth opportunities? Do not round your intermediate calculations.
| A. | $11 | |
| B. | $29 | |
| C. | $14 | |
| D. | $7 |
The earnings of Confinity Inc. were $6 per share last year. Its expected ROE is 18% and cost of equity is 14%. It will maintain a dividend payout ratio of 60%. What price do you expect Confinity shares to sell for in 6 years? Do not round your intermediate calculations.
| A. | $86 | |
| B. | $98 | |
| C. | $80 | |
| D. | $72 |
Please show work and calculator work if necessary, thanks :)
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
