Joker stock has a sustainable growth rate of 6 percent, ROE of 17 percent, and dividends per

Question:

Joker stock has a sustainable growth rate of 6 percent, ROE of 17 percent, and dividends per share of $1.65. If the P/E ratio is 19, what is the value of a share of stock?

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

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

See More Books

Question Posted: Sep 19, 2012 04:37 AM

See More Questions

Joker stock has a sustainable growth rate of 8 percent, ROE of 14 percent, and dividends per share of $1.65. If the P/E ratio is 19, what is the value of a share of stock?
Define relevant costs and discuss: (1) whether all future costs are relevant for decision making and (2) whether variable costs are always relevant and fixed costs are always irrelevant
Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 8 percent a year, a debt-equity ratio of .85, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is...
Relationship of the Balanced Scorecard to activity-based costing Explain how an activity-based costing model can be linked to a Balanced Scorecard approach.
Find the great-circle distance from St. Paul (longitude 9.31o W, latitude 45o N) to Oslo (longitude 10.5o E, latitude 59.6o N)
Andrews Company manufactures a line of office chairs. Each chair takes $ 14 of direct materials and uses 1.9 direct labor hours at $ 16 per direct labor hour. The variable overhead rate is $ 1.20 per...
To build an information system, which do you need to identify first, classes or objects?
Write the structure of the major organic product formed in the reaction of 1-pentene with each of the following: (a) Hydrogen chloride (b) Hydrogen bromide (c) Hydrogen bromide in the presence of...
Discuss the implications of the efficient market hypothesis on the effectiveness of technical and fundamental analysis in stock valuation.
A fitness enthusiast is trying to strengthen his calf muscles. He uses the exercise machine below. His heels apply a force to the padded bar. This lifts the heavy weights. a. The centre of mass of...
Johnson Products earned $3.10 per share last year and paid a $.75 per share dividend. If ROE was 16 percent, what is the sustainable growth rate?
A certain stock has a beta of 1.2. If the risk-free rate of return is 5.1 percent and the market risk premium is 8.5 percent, what is the expected return of the stock? What is the expected return of...
What are the essential terms in a lease?
On August 1, 2023, the board of directors declared a 10% stock dividend, to be distributed on September 15. The market price of Ivanhoe's common shares was $34 on August 1 and $37 on September 15....
Suppose that immediately after the bonds in the securitization deal were issued, $290 mm of principal was received on the mortgages. What would be the balance of the bonds? Show balances for each...
1)Identifying and describing (3-4) psychological biases that may influence a person's financial decision-making, including insights as to why you may be susceptible to these biases? 2) Outline...
Evaluate the company's financial standing using audited financial statements As at July 31 (in 000's) 2023 2022 As at July 31 (in 000's) 2021 ASSETS ASSETS Current Current Cash $12,139 $14,023 Cash...
On January 1, 2018, Paul Company purchased 80% of the common stock of Smith Company for $300,000. On this date Smith had total owners' equity of $350,000. Any excess of cost over book value is...
The endocrine organ that sits atop a kidney is _________. A. The pituitary gland; B. The hypothalamus; C. The ovary; D. The adrenal gland; E. the testicle
A routine activity such as pumping gasoline can be related to many of the concepts studied in this text. Suppose that premium unleaded costs $3.75 per gal. Work Exercises in order. Use the...
What considerations go into forecasting when dark chocolate will peak?
a. What is a futures contract? b. What are the general types of futures contracts? c. Explain how you make or lose money on a futures contract.
Screen for stocks that have the highest current dividend yield.
A European option can be exercised: a. Only after American options. b. Anytime up to and including the expiration date. c. Only on the day before the expiration date. d. Only on a European exchange.
Q1) Find expressions for the Revenue, Cost, and Profit from selling x thousand items. Item Price Variable Cost $8.00 3816x Fixed Cost $71,174
1. There are many market disruptions in the news today. (If you get stuck, on the last slide of the PowerPoint, I've given you 2 examples.) Choose any disruptor in the news and, (a) summarize the...
Discuss at least five of the formatting decisions you would have to make when typing a table. Compare the decisions you provided to those of two of your classmates. Do you agree or disagree with the...

Joker stock has a sustainable growth rate of 6 percent, ROE of 17 percent, and dividends per

Question:

Step by Step Answer:

Sustainable growth 06 17r ret...View the full answer

Fundamentals of Investments Valuation and Management

Students also viewed these Corporate Finance questions