1. The option is currently A. In-the-money B. At-the-money C. Out-the-money 2. Determine the In/At/Out- the money by _____ 3, Determine the Intrinsic Value
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1. The option is currently
A. In-the-money
B. At-the-money
C. Out-the-money
2. Determine the In/At/Out- the money by _____
3, Determine the Intrinsic Value
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- when the market value of preferred shares is $ 2850000 & cost per share is $125 per share determin the number of prefered shares optiona are 22500 22800 22750 21500TOPIC WEIGHTED AVERAGE A company has an issue of preferred stock outstanding with a coupon rate of 5% that sells for RM80 per share. If the par value is RM100, what is the cost of the company’s preferred stock?A company expects EPS to be $8.81 next year. The industry average P/E ratio is 34.84 and Enterprise multiple is 11.23. The EBITDA for the company is $20.78 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.
- Use the following tables to assess the worthiness of Verticon stock as an investment. Verticon Stock Data (Current and Historical) 3:45PM EDT Aug 16, 2011 Price 18.85 USD Change +0.64 (+3.51%) Mkt cap 147.1B Div/yield 0.20/4.24 Shares 8,012 Beta 0.70 Book/share 11.335 EPS 1.11 12/2010 12/2009 12/2008 (Millions of Dollars) Total Assets 195,014 195,949 111,148 Total Liabilities 107,201 122,935 53,592 Preferred Shareholders’ Equity 52 61 73 Common Shareholders’ Equity 87,761 72,953 57,483 Shares Outstanding 8,012 8,070 6746 Book/Share ? 9.040 8.521 Q1 (Mar ’11) 2010 Net profit margin 15.24% 12.24% Return on equity 11.60% 9.30% Which one in bold? One of the most important features of a stock is its book value. The book value per share of Verticon’s stock for the year 2010 was equal to (10.954, 13.693, 11.502). Looking at the (Market cap, EPS, change in price, beta value, ROE) ,…Market Data Risk-Free Rate (Annualized) 0.025 Vokinar Corporation Stock Price $55.00 Dividend Yield 0.03 Standard Deviation 0.45 Exercise Price $50.00 Maturity (Years) 0.25 Required: Using the Black-Scholes option pricing formula and the data above, please calculate the price of the European call and put for this share of stock. (Use cells A3 to B10 from the given information to complete this question.) Vokinar Corporation d1 d2 N(d1) N(d2) Call Price Put PriceThe M. Smith and Family Corporation Data Shares Outstanding 25,000,000 Earnings $50,000,000 Dividends, Per Share (Just Paid) $1.25 Return on Equity 0.15 Beta 1.35 Market Data Expected Return Market Return 0.12 Risk-Free Rate 0.03 Required: Using the information in the tables above, complete the necessary steps to calculate the P/E ratio and the PEG ratio. The M. Smith and Family Corporation Calculations Capitalization Rate Earnings Per Share Plowback Rate Sustainable Growth Rate Price P/E Ratio Sustainable Growth Rate (as Percentage, use for PEG Calculation) 0 PEG Ratio
- Stock price: $81 number of shares: 20000 total assets: 6,400,000 total liabilities: 4,000,000 net income: 760,000 cost of investment: $600,000 & will be financed with a new equity issue the ROI = current ROE FIND THE NPVA company that is currently enjoying a 12.5% growth rate expects to pay dividends of P4.50 per share for its common stock offerings. If the estimated cost of capital for the company is 20%, determine the price for which the stocks should be offered. (Ans. P60.00/share)If a company has a current stock price of $37, an EPS of $2.25/share; EPS growth rate of 15% and the investors rate of return is 15%, calculate the percentage of share value arising from growth opportunities. Multiple Choice 58.00% 58.50% 59.00% 59.50% 60.00%
- Common stock valuation) Assume the following: • the investor's required rate of return is 12.5 percent, • the expected level of earnings at the end of this year (E1) is $14, • the retention ratio is 45 percent, • the return on equity (ROE) is 15 percent (that is, it can earn 15 percent on reinvested earnings), and • similar shares of stock sell at multiples of 9.565 times earnings per share. Questions: a. Determine the expected growth rate for dividends. b. Determine the price earnings ratio (P/E1). c. What is the stock price using the P/E ratio valuation method? d. What is the stock price using the dividend discount model? e. What would happen to the P/E ratio (P/E1) and stock price if the company increased its retention rate to 60 percent (holding all else constant)? What would happen to the P/E ratio (P/E1) and stock price if the company paid out all its earnings in the form of dividends? f. What have you learned about the…stock is priced at $50 per share. The stock has earnings per share of $7 and a market capitalization rate of 15%. What is the stock's present value of growth opportunities (PVGO)?(Common stock valuation) Assume the following: • the investor's required rate of return is 13.5 percent, • the expected level of earnings at the end of this year (E1) is $6, • the retention ratio is 40 percent, • the return on equity (ROE) is 15 percent (that is, it can earn 15 percent on reinvested earnings), and • similar shares of stock sell at multiples of 8.000 times earnings per share. Questions: a. Determine the expected growth rate for dividends. b. Determine the price earnings ratio (P/E1). c. What is the stock price using the P/E ratio valuation method? d. What is the stock price using the dividend discount model? e. What would happen to the P/E ratio (P/E1) and stock price if the company increased its retention rate to 75 percent (holding all else constant)? What would happen to the P/E ratio (P/E1) and stock price if the company paid out all its earnings in the form of dividends? f. What have you learned about…