Consider the following table of Earnings Components:     Firm A   Firm B   Firm C Reported EPS $ 12     $ 15     $ 18   Analyst’s EPS composition:                       Permanent component (βP = 5)   80 %     60 %     75 % Transitory component (βT = 1)   10 %     35 %     25 % Value-irrelevant component (β0 = 0)   10 %     5 %     0 %     The implied share price of Firm C’s stock is:   Multiple Choice   $18.00   $63.00   $72.00

Q: Hihotech Company reported net income of 2.3 million for the year ended 20XX and had a weighted…

A: The question is based on the concept of calculation of earning per share , which is calculated as…

Q: Bulgasal Company provided the following data: 2020 2021 Share capital (P100 par value) 5,000,000…

A: Retained earnings is the amount of earnings which is accumulated and collected over the period of…

Q: Assume that a company’s beginning-of-period price is $17 per common share, its dividends are $1 per…

A: Beginning price of stock = Dividend / ( 1 + Cost of Equity capital) + end of period price / ( 1 +…

Q: Larabee Company's share sells for $32 per share. The company has $76 million in earnings and 212…

A: Calculation of EPS = Earnings / no of shares = $ 76 million / $ 212 million = 0.358491 PE ratio =…

Q: (Preferred stock valuation) Davis Plc. has in its share capital 100,000, $10 preferred shares paying…

A: a. Cost of preference share capital can be calculated as follows: Kp=DPwhereKp=Cost of preference…

Q: Qs) For its fiscal year- end, Calvan Water Corporation (CWC) reported net income of $12 million and…

A: Diluted EPS-   It is the measurement of quality of Earnings Per Share after accounting for exercised…

Q: The following information is taken from Tanaka Bhd for the year ended 31 December 2020. Preference…

A: (iv) Profit Margin = Net ProfitNet Sales=RM6,448,000RM100,000,000=6.448%=6%   (v) Earnings per share…

Q: PQR Co. has earnings of $2.66 per share. The benchmark PE for company is 19. What stock price (to…

A: Formula:

Q: Calculate the earnings per share (average of 418,000 shares outstanding for the year) for 2020.…

A: Price earnings ratio = Market price/Earnings per share

Q: The following information is taken from Tanaka Bhd for the year ended 31 December 2020. Preference…

A: Note: As per our guidelines, only the first three subparts will be answered    i. Current ratio =…

Q: What is the amount of gain (loss) on Dec 31, 20X1, Dec 31, 20X2 and Jan 20X3 respectively?

A: The cost of the shares means the amount that is spent on the purchase of the shares. this cost…

Q: Suppose that in July 2013, Nike Inc. had EPS of $2.29 and a book value of equity of $11.91 per…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Everest Company's share is currently trading in the market at OMR 240. The Earning per share of the…

A: given EPS = 120  Dividend = 80

Q: Price-Earnings Ratio; Dividend Yield The table that follows shows the stock price, earnings per…

A: a. The computation of Price-earnings ratio and dividend yield are as below: Formulae used are…

Q: Calculate the earnings per share (average of 418,000 shares outstanding for the year) for 2020.…

A: Price earning ratio helps the Investor to understand the value of the company. This ratio shows the…

Q: EXAMPLE 6: Calculate the Earnings Per Share(EPS) from the following data. OMR Net Profit after Tax…

A: Given: Net profit after tax (NPAT) = OMR 600000 10% Preference shares (10 each) = OMR 1000000 Equity…

Q: Qs) For its fiscal year- end, Calvan Water Corporation (CWC) reported net income of $12 million and…

A: 2. IFRS Calculation of Net Increase in common share equivalent  Before Calculating Diluted EPS,…

Q: Bulgesal Company provided the following data: 2020 2021 Share capital (P100 par value) 5,000,000…

A: solution given Cash dividend issued 1000000   Share dividend issued…

Q: Global Mining Company has OMR 150 par value preferred stock. The company pays OMR 12 per share…

A: The cost of preferred stock for a company is simply the cost of issuing the preferred stocks.

Q: Hihotech Company reported net income of 2.3 million for the year ended 20XX and had a weighted…

A: Net Income = 2.3 Million  Weighted average common shares outstanding = 800,000 shares The exercise…

Q: Raysut Cement has a preferred share issue outstanding with a current price of OMR 26.57. The firm is…

A: Preferred shares are the stocks that have a preference over the common stocks of the company, which…

Q: Consider the following data:                                                   Amount ($) Common…

A: Number of Common Stock ($400000 / $1) 400000   Stock Dividend (400000  shares * 10%) 40000…

Q: ABC's Net Income this year was $20,650,000 and there were 19.5 million shares outstanding. If the…

A: Given, Net Income = $20650000 Shares Outstanding = 19500000

Q: Q20 The current market price of an equity share of a company is OMR 70, cost of equity is 14.85%…

A: Current dividend per share: = Current share price * ( Cost of equity - growth rate)

Q: The owners' equity accounts for Masterson International are shown here: Common stock ($1 par value)…

A: Stock split is an action in which a corporate entity divides a single share into one or more shares…

Q: Assume the company earns $1.62 per share. Calculate the yield percent (round to the nearest tenth…

A: Dividend percentage is the amount of dividends that a company pays out in dividends in relation to…

Q: Assume that a company's beginning-b per share, and its end-of-period price is $10.50 per common…

A: (Note: We’ll answer the M12-20  question since it was specified. Please submit a new question…

Q: Answer the following requirements assuming a discount rate (WACC) of 735, a terminal period growth…

A: The discount cash flow is a valuation model that helps to compute the valuation of the company by…

Q: Assume the company earns $1.62 per share. Calculate the yield percent (round to the nearest tenth…

A: Dividend yield shows how much company pays a dividend as compare to market price of the share. In…

Q: Assume the company earns $.70 per share. What was yesterday’s closing price? (Round your answer to…

A: The closing price is the price at which the stock was last traded. The last trading price of the…

Q: Calculate the following for the Current Year based on the information above. (Round percent to one…

A: Calculation of  ROA , ROE, EFFECT OF LEVERAGE, EPS AND P/E RATIO  are as follows.

Q: Assume the capital structure of XYZ Company:    Bonds payable, 10% . . . . . . . 500,000…

A: bond price = rd×1-tax where, rd=cost of debt

Q: The owners' equity accounts for Alexander International are shown here: $ 40,000 335,000 Common…

A: Stock dividend: Dividend payments to shareholders provided in the form of stock rather than cash are…

Q: 2- The cumulative net profit of a company traded in BIST is given below. Net Profit/ (Cumulative)…

A: Net profit :- The amount of money your company makes after deducting all operational, interest, and…

Q: Lear & Co has a PE of 17, a forward PE of 14.5, and a price of $67.40 per share. The company has…

A: The forecasted EPS can be calculated with the help of forward PE ratio which can be used to…

Q: The Royal Gold’s stock currently sells for RM 90 per share. The firm issued rights to raise new…

A: In this question we need to compute the ex-rights stock price from below details: Current market…

Q: The Royal Gold’s stock currently sells for RM 90 per share. The firm issued rights to raise new…

A: In this question we need to compute the price of one right.

Q: s required rate of return is 14 percent, cted level of earnings at the end of this year (E, ) is $8,…

A: Price of stock can be determined by P/E ratio method and dividend discount model.

Q: Assume a financial analyst concludes the following probabilities and corresponding dividend payment…

A: Standard deviation: it frequently used measure of variability. It is a statistic that provides an…

Q: The following ABC data are available: 1) profit to be retained: 75,000 m.u.; 3. 2) Expected rate of…

A: Expected Rate of return = 15% Profit Retained = 75,000 Profit after tax = 200,000

Q: The Market Cap of a company with 1,700,000 shares outstanding and a market price per share of $25 is…

A: Market capitalisation is generally referred as market cap. It represents the value of the…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.