7. Determine the P/E ratio of the company ZYX if you know that the number of company's outstandingshares is 18,000,000. The current market price of the company corresponds to 588.5 per share. The company'sintrinsic value is 654 per share. The expected return for investors is 8.7 %. The dividend amounts to 62.4. TheEBIT in the given year corresponded to the amount of 481,530,000.a. 24.4b. 26.6c. 22d. 19.7e. 258. Consider the spot rate of 24.36 CZC/EUR. If we assume a payment for goods of 5.000 EUR in two monthsand the spot rate at that time will be 24.95 CZC/EUR. For hedging purposes, it is possible to arrange a forwardon the exchange rate with a fixation of 24.7 CZC/EUR. If the company were to import goods. closing a forwardwould mean a profit/loss in the amount of:a. 1.250 EUR gainb. 1,700 CZC lossc. 2,950 EUR gaind. 1,250 CZC gaine. 1,250 CZC loss

A financial ratio called Price/Earnings (P/E) compares a company's market price per share to its…

7. Determine the P/E ratio of the company ZYX if you know that the number of company's outstanding shares is 18,000,000. The current market price of the company corresponds to 588.5 per share. The company's intrinsic value is 654 per share. The expected return for investors is 8.7 %. The dividend amounts to 62.4. The EBIT in the given year corresponded to the amount of 481,530,000. a. 24.4 b. 26.6 c. 22 d. 19.7 e. 25

7. Determine the P/E ratio of the company ZYX if you know that the number of company's outstanding shares is 18,000,000. The current market price of the company corresponds to 588.5 per share. The company's intrinsic value is 654 per share. The expected return for investors is 8.7 %. The dividend amounts to 62.4. The EBIT in the given year corresponded to the amount of 481,530,000. a. 24.4 b. 26.6 c. 22 d. 19.7 e. 25

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume that a company’s shares has intrinsic value P125 per share and is trading at P130. This company requires an 6% minimum rate of return and will pay a dividend per share next year which is expected to increase by 4% annually. a. How much the company will pay for dividend per share? b. What is the status of the shares in the market?
An analyst has gathered the following information for the Oudin Corporation: Expected earnings per share = €5.49 Expected dividends per share = €2.13 Dividends are expected to grow at 2.53 percent per year indefinitely The required rate of return is 7.74 percent Based on the information provided, compute the price/earnings multiple for Oudin (Enter your answer as a number with two decimal places, like this: 12.34)
Everest Company's share is currently trading in the market at OMR 240. The Earning per share of the company during last year is OMR 120 and the company paid a dividend of OMR 80 per each share during this period. The Dividend yield ratio of the company will be: a. 50% b. 66.67% c. 70% d. 33.33%
Credenza Industries is expected to pay a dividend of $1.50 at the end of the coming year. It is expected to sell for $61 at the end of the year. If its equity cost of capital is 9%, what is the expected capital gain from the sale of this stock at the end of the coming year? .... O A. $57.34 O B. $5.04 OC. $55.96 O D. $3.66 ..
Assume that a company’s shares have an intrinsic value of P125 per share and are trading at P130. This company requires a 6% minimum rate of return and will pay a dividend per share next year which is expected to increase by 4% annually. How much the company will pay for dividends per share? What is the status of the shares in the market?
A company expects EPS to be $2.52 next year. The industry average P/E ratio is 23.99 and Enterprise multiple is 7.57. The EBITDA for the company is $22.97 million. What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.
Credenza Industries is expected to pay a dividend of $1.55 at the end of the coming year. It is expected to sell for $68 at the end of the year. If its equity cost of capital is 10%, what is the expected capital gain from the sale of this stock at the end of the coming year? OA. $63.23 OB. $4.77 O.C. $61.82 OD. $6.18
The Evanec Company's next expected dividend, D1, is $3.08; its growth rate is 4%; and its common stock now sells for $39.00. New stock (external equity) can be sold to net $31.20 per share. a. What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. rs b. What is Evanec's percentage flotation cost, F? Round your answer to two decimal places. F = % c. What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. re = %
5) The current year's profits of Ferro Inc. is 1200 b and the next year's profits are estimated as 1400 t. The current year's dividend per face value of 1 b is 35%. Compute the intrinsic value of a share of this company for an investor whose required rate of return is 25%. 6) Milestone Inc Distributog 550
Suppose Kaspi Bank is trading share at 25$ today. The company pays dividend of 0.25. The analysts claimed that in one year, target price will be 32$. What is the expected return?
The investment banking firm of Stan Inc. will use a dividend valuation model to appraise the shares of the DB Corporation. Dividends (D) at the end of the current year will be P1.20. The growth rate (g) is 9% and the discount rate (K) is 13%?
The Evanec Company's next expected dividend, D1, is $2.69; its growth rate is 7%; and its common stock now sells for $35.00. New stock (external equity) can be sold to net $31.50 per share. What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. rs = % What is Evanec's percentage flotation cost, F? Round your answer to two decimal places. F = % What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. re = %

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