Absolute Valuation 1. INV Design Ltd just paid a dividend of $4, and its earnings per share

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

Question:

Absolute Valuation 1. INV Design Ltd just paid a dividend of $4, and its earnings per share was $6. The Net Income margin is 15%, Asset Turnover is 1.25 and Debt-to-Equity is 0.6. The appropriate rate of return on INV is 30%.

a) Calculate the current share price using the Dividend Discount Model

b) Calculate the PE ratio of INV using historic trailing 12 months earnings.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

See More Books

Posted Date: Apr 02, 2024 03:28 AM

See More Questions

A bond just purchased pays annual interest of 10 percent. In seven years it matures at its face value of $25,000. What price was paid if current yields on a bond of this risk are 8.5 percent? 2. A...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
What is the NPV for the following project cash flows at a discount rate of 15%? C0=-1,000, C1=700, C2=700 SOB Floor Company has a risk premium of 21% and a beta of 3. If the risk free rate is 3%,...
4. Jerry intends to use the money from his loan (and his personal savings if necessary) to make an investment in his friend Elaines business. In return, Elaine has predicted the following returns on...
To prove corollary 2.4.2, let S c E and s* = sup S. 1. For every x S there exists some zx p(s*) such that zx x. 2. Let z* = sup zx. Then a. z* s* b. z*
Write on the new approaches to business analysis and models to minimize the security breaches for the financial industry.
Two objects initially moving at velocities that have $x$ components $v_{1 x}$ and $v_{2 x}$ collide totally inelastically. (a) Show that the ratio of the kinetic energy dissipated in the...
Mercury Delivery Service completed the following transactions and events involving the purchase and operation of equipment for its business. 2012 Jan. 1 Paid $ 25,860 cash plus $ 1,810 in sales tax...
A new car valued at $13,500 is to be leased for 3 years. The lease has the option to purchase the car for $7,500 at the end of the leasing period. What monthly payments, with one payment in advance,...
Financing that individuals or institutions have provided to a corporation is: a. classified as a stockholders' equity when provided by creditors and liability when provided by owners b. always...
Juan, the new Latin American project manager, was leading a change management project which targeted a new sales approach. When he met his Scandinavian team, he spontaneously decided to introduce...
What are the emerging therapeutic strategies targeting respiratory metabolism, mitochondrial dynamics, and redox signaling pathways for the treatment of metabolic disorders, neurodegenerative...
Consider the Cox-Ross-Rubinstein model for the pricing of European call options with parameters Xo = 1, K = 2, = ln(4) and := In(2). == (1) (10p) Determine the Black-Scholes price II* for maturity...
In what ways can grassroots movements and community organizing initiatives challenge entrenched social class hierarchies and advocate for more equitable socio-economic structures?
19. An old and worn 50-ft woven cloth tape is used to lay out and mark the corners of a 75.0 x 150.0 ft building. It is later found that the actual tape length was 50.15 ft. What dimensions were...
Describe three (3) different organizational dilemmas from the perspective of three leadership approaches and then make recommendations to address the identified dilemma, based on the approach...
Solve the relation Exz:Solve therelation ne %3D
Consider the electrical circuit shown below where $v_{i}(t)=\beta$, for $t \geq 0$. Find the dynamic system response $v_{o}(t)$. VC C ww R V;(t) R ww R3 A First-Order Electrical System Vo (t) +
Consider a first-order system with no input such that the input-output differential equation is given by \[\dot{y}+3 y=0 \text {. }\] Find its system response.
Find the dynamic system response for the spring mass damping system shown in Figure 3.2, where $f(t)=\beta, x(0)=0$ (i.e. there is no initial energy stored). b f(t) k Figure 3.2 A first-order...

Absolute Valuation 1. INV Design Ltd just paid a dividend of $4, and its earnings per share

Question:

Expert Answer:

Intermediate Accounting

Students also viewed these finance questions