An analyst estimates the earnings per share and price-to-earnings ratio for a stock market series to be

Question:

An analyst estimates the earnings per share and price-to-earnings ratio for a stock market series to be $43.50 and 26 times, respectively. The dividend payout ratio for the series is 65 percent. The value of the stock market series is closest to:

a. 396

b. 735

c. 1,131

d. 1,866.

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: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

See More Books

Question Posted: Dec 29, 2023 10:27 PM

See More Questions

Earnings per Share and Dividend Payout Ratio Compute (1) Earnings per share and (2) Dividend payout ratio for Companies S and T. Indicate which of the two companies is more likely to be an older...
The following summary of the earnings per share (in U.S. $), price-earnings (P-E), payout, and dividend yield ratios is available for five years ended December 31 for Barrick Gold Corporation:...
The following summary of the payout, dividend yield, and earnings per share ratios is available for five years ended December 31 for TransAlta Corporation: Instructions (a) What are some possible...
The substitution u=sin(x) is suitable to evaluate the integral cosx sin 3x O True O False
Discuss whether it would be advisable to hot work or cold work the following metals and alloys on the basis of melting temperature, oxidation resistance, yield strength, and degree of brittleness:...
Internal audits can generally be classified as (1) Operational audits, (2) Compliance audits, or (3) Financial audits. Required a. For each of the following audit procedures, briefly indicate which...
Once a salesperson sees one or more buying signals from a prospect, he or she should trial close. What happens if the prospect doesnt close at that point? Why is this outcome actually favorable for...
Cranston LTD. prepares its financial statements according to International Financial Reporting Standards. In October 2013, the company received a $2 million government grant. The grant represents 20%...
3. May 9: Derby's engineering staff complete the train design and it is approved by officials from OM as well as the Transportation Safety Board. 4. August 1: Derby completes construction of the 10...
Landon Air is a new airline that makes roundtrip flights just between Indianapolis and Boston. It has EBIT of $45 million, interest expense of $6.54 million, no change in net working capital,...
Two similar companies acquire substantial new production facilities, which they both will depreciate over a 10-year period. However, Company A uses accelerated depreciation while Company B uses...
In the Home Depot 2015 financial statements in Appendix A at the end of this textbook, read Note 1. Find the information about Home Depot's international store locations. a. In what countries (other...
In Problems 21-38, guess the requested limits. $\lim _{n ightarrow \infty} \frac{1-n}{n+10}$
Two packs $\mathrm{A}$ and $\mathrm{B}$ of mass $m_{A}=2.2 \mathrm{~kg}$ and $m_{B}=2.8 \mathrm{~kg}$ are connected by an inextensible rope of negligible mass. Pack A rests on an inclined...
An investment opportunity that will involve an investment of $1,000 will generate $300 per year for five years and then earn $140 per year forever. What is the net present value of this investment,...
If $f(x)=x^{2}+1$, find a. $f(-3)$ b. $f\left(\frac{1}{2} ight)$ c. $f(b)$
Write a program Combinations that takes an integer command-line argument $n$ and prints all $2^{n}$ combinations of any size. A combination is a subset of the $n$ elements, independent of...
What circumstances favor the custom design strategy?
Write a paper about the Working relationship in the organization- collaboration within and outside the organization
Why is the target market placed in the center of the four Ps in the text diagram of a marketing strategy (Exhibit 2-4)? Explain, using a specific example from your own experience.
If a company sells its products only from a website, which is accessible over the Internet to customers from all over the world, does it still need to worry about having a specific ta r get market?...
Explain, in your own words, what each of the four Ps involves.
3. In a classification problem, suppose we would like to use discriminant analysis to classify the response Y into 3 classes (Y = 1,2,3) based on one predictor X. In the class k (k = 1,2,3), X...
Let's get back to basics with some good old Map Coloring. As a refresher, in the Map Coloring problem, the goal is to assign one of k colors to variables in some geographically connected setting such...
Consider the following vectors: A[578]; B[30-1]; C=cross (A, B) What is the value of C(2)?

An analyst estimates the earnings per share and price-to-earnings ratio for a stock market series to be

Question:

Step by Step Answer:

To find the value of the stock market series we can use the pricetoearnings ratio PE ra...View the full answer

Fundamentals Of Investments Valuation And Management

Students also viewed these Business questions