YGTB, Inc., currently has an EPS of $2.35 and an earnings growth rate of 8 percent. If

Question:

YGTB, Inc., currently has an EPS of $2.35 and an earnings growth rate of 8 percent. If the benchmark PE ratio is 21, what is the target share price five years from now?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

See More Books

Question Posted: Nov 21, 2016 08:17 AM

See More Questions

Davis, Inc., currently has an EPS of $2 and an earnings growth rate of 8 percent. If the benchmark PE ratio is 22, what is the target share price five years from now?
RAK, Inc., currently has an EPS of $2.45 and an earnings growth rate of 8 percent. If the benchmark PE ratio is 23, what is the target share price five years from now?
Berta, Inc., currently has an EPS of $3.85 and an earnings growth rate of 7 percent. If the benchmark PE ratio is 21, what is the target share price five years from now?
1. Was the contract between Joel King and Barber bilateral or unilateral? 2. What was bargained for and given in exchange by each party? Mark P. Painter, Judge This case involves neighbors and the...
Yukio Mishima Industries acquired equipment this year to be used in its operations. The equipment was delivered by the suppliers, installed by Mishima, and placed into operation. Some of it was...
M&M and taxes in problem 14, what is the cost of equity after recapitalization, what is the WACC? What are the implications for the firms capital structure decision?
What competitive advantage(s) do you think Nike has? Have its resources, capabilities, or core competencies contributed to its competitive advantage? Explain.
Lisa Meilo works for Pacific Company, which pays its employees time- and- a- half for all hours worked in excess of 40 per week. Meilos pay rate is $ 37 per hour. Her wages are subject to federal...
Techcom is designing a new smartphone. Each unit of this new phone will require $230 of direct materials; $10 of direct labor; $22 of variable overhead; $18 of variable selling, general, and...
Change Purse Inc. is a small business that is planned to be located in a small Nova Scotia town. The town was incorporated in 1889 and, like many communities in Nova Scotia, it prides itself on being...
Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 16 percent per year for the next 11 years before leveling off at 4 percent into perpetuity. The...
Caan Corporation will pay a $3.56 per share dividend next year. The company pledges to increase its dividend by 3.75 percent per year indefinitely. If you require a return of 11 percent on your...
Carefully prove that (x, y) T =| x | + 2 | x y |defines a norm on R 2 .
Micro-Brush requires a new component for their laptop cleaning machines. The company must decide whether to make or buy them. If it decides to make them. Should it use process A or process B? Use a...
Moving from a fee-for-service to a managed care delivery system set up a series of expectations (page 421). How many of these expectations are realistic? How many have been realized?
2. A 55 kg human is shot out the end of a cannon with a speed of 18 m/s at an angle of 60. Ignore friction and solve this problem with energy conservation. As he exits the cannon, find: a. horizontal...
Theoretical Background: Information Assurance (IA) architecture also known as security architecture is about planning, integrating and continually monitoring the resources of an organization so they...
AZCN recommends Microsoft Lens or Adobe Scan; download one of these to yo phone via your phone's app store 2. Place the document you want to scan on a flat, well-lit surface. Make sure the document...
Retrieve the unemployment data from The World Bank database (http://databank.worldbank.org/data/home.aspx) for India, Spain, and South Africa for 2011-2015. Prepare a chart that compares India,...
Prove the formula for (d/dx)(cos-1x) by the same method as for (d/dx)(sin-1x).
A piece of newly purchased industrial equipment costs $975,000 and is classified as seven-year property under MACRS. Calculate the annual depreciation allowances and end-of-the-year book values for...
Consider an asset that costs $640,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can...
Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.7 million. The fixed asset will be depreciated straight-line to zero over its...
Draw an interaction diagram for the following contract: If a collaboration diagram is used, be sure that all messages' sequence numbers are shown. Contract: Scheduling a Flight Operation:...
Columbus Industries makes a product that sells for $37 a unit. The product has a $29 per unit variable cost and total fixed costs of $10,000. At budgeted sales of 1,950 units, the margin of safety...
18. Suppose that Maxima shares are selling for $10 per share and you own a call option to buy Maxima shares at $7.50. The intrinsic value of your option is:

YGTB, Inc., currently has an EPS of $2.35 and an earnings growth rate of 8 percent. If

Question:

Step by Step Answer:

To find the target price in five years we first n...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions