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

Question

1 Approved Answer

The market price of a share of common stock is $60. The dividend just paid is $3, and the expected growth rate is 10%. What

image text in transcribed
The market price of a share of common stock is $60. The dividend just paid is $3, and the expected growth rate is 10%. What is the price of new common shares? Answer: From the following information of two companies. Company Xy P/E ratio is 10. Company XZ P/E is 5. The sum total of the post tax earnings of the above mentioned companies are dollar 1392899. Assume the sales $3000000 Compute the market value of two companies

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

Personal Finance That Works For You How To Build Wealth Design Your Future And Make Money While You Sleep

Personal Finance That Works For You How To Build Wealth Design Your Future And Make Money While You Sleep

Authors: Matthew Kent

1st Edition

1983092851, 9781983092855

More Books

Students also viewed these Finance questions

Question

★★★★★
In the article ''Using EDE, ANOVA and Regression to Optimize Some Microbiology Data'' (Journalof Statistics Education, Vol. 12, No. 2, online), N. Binnie analyzed bacteria-culture data collected by...

Answered: 1 week ago

Question

★★★★★
Please quick as possible. Only 3 hours left Answer in detail, please (Marks 10) "Elaborate the word research in your own words and what salient features make a scientific inquiry more meaningful and...

Answered: 1 week ago

Question

★★★★★
What are some of the operational problems that excessive work-in-process inventory might indicate?

Answered: 1 week ago

Question

★★★★★
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2011, of a five-period annual annuity of $5,000 under each of the...

Answered: 1 week ago

Question

★★★★★
The market price of a share of common stock is $60. The dividend just paid is $3, and the expected growth rate is 10%. What is the price of new common shares? Answer: From the following information...

Answered: 1 week ago

Question

★★★★★
The contribution margin for Sam's Bookstore for the first quarter is: Multiple Choice $210,000 $841,600 $171,600 $788,400 The contribution margin for Sam's Bookstore for the first quarter is: Mutchle...

Answered: 1 week ago

Question

★★★★★
Question: What happens when a class in Java implements an interface but does not provide an implementation for all of its methods? A) The program will compile successfully but throw a runtime...

Answered: 1 week ago

Question

★★★★★
PDE Essentials of MIS 13th Edition - P X + X C File | C:/Users/mande/Downloads/Essentials%20of%20MIS%2013th%20Edition%20-%20PDF%20ebook%201.pdf . . 301 of 548 Q + Three Internet titans-Google, Apple,...

Answered: 1 week ago

Question

★★★★★
8.1 Riphean plc and Silurian plc are two businesses operating in different industries. They are both financed by a mixture of ordinary share and loan capital and both are seeking to derive the cost...

Answered: 1 week ago

Question

★★★★★
At the end of 2016, Novak Corp. has accounts receivable of $767,100 and an allowance for doubtful accounts of $23,810. On January 24, 2017, it is learned that the company's receivable from Madonna...

Answered: 1 week ago

Previous Question Next Question