Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 7 1 pts UoA Ltd just reported earnings per share (EPS) of $4.5. The share has a price earnings ratio of 50. Analysts expect

image text in transcribed

Question 7 1 pts UoA Ltd just reported earnings per share (EPS) of $4.5. The share has a price earnings ratio of 50. Analysts expect that one year from now the company will still have an EPS of $4.5, and it will pay its first dividend of $2 per share. The share has a required return of 10%. What price earnings ratio must the share have one year from now so that investors realise their expected return? 54.56 O 225 49.9 245.5 Question 8 1 pts Short term bonds tend to have lower yields than that of long term bonds because: short term bonds are more exposed to liquidity risk than long term bonds O holders of long term bonds benefit most from a rise of interest rates O long term bonds are more price sensitive than short term bonds O long term bonds are less price sensitive than short term bonds

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

Finance A Quantitative Introduction Volume 1

Authors: Piotr Staszkiewicz, Lucia Staszkiewicz

1st Edition

0128015845, 978-0128015841

More Books

Students also viewed these Finance questions

Question

Define epistemology.

Answered: 1 week ago