Market Value Ratios (LO3) Earl Grey Golf Corp. has 25,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $43. What is the price-earnings ratio? What are the dividends per share? What is the market to book ratio at the end of 2018? If the company's growth rate is 9%, what is the PEG ratio?
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- CALCULATING THE WACC Here is the condensed 2019 balance sheet for Skye Computer Company (in thousands of dollars): Skyes earnings per share last year were 3.20. The common stock sells for 55.00. last years dividend (D0) was 2.10, and a flotation cost of 10% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 9%. Skyes preferred stock pays a dividend of 3.30 per share, and its preferred stock sells for 30.00 per share. The firms before-lax cost of debt is 10%, and its marginal tax rate is 25%. The firms currently outstanding 10% annual coupon rate, long-term debt sells at par value. The market risk premium is 5%, the risk-free rate is 6%, and Skyes beta is 1.516. The firms total debt, which is the sum of the companys short-term debt and long-term debt, equals 1.2 million. a. Calculate the cost of each capital component, that is, the after-tax cost of debt, the cost of preferred stock, the cost of equity from retained earnings, and the cost of newly issued common stock. Use the DCF method to find the cost of common equity. b. Now calculate the cost of common equity from retained earnings, using the CAPM method. c. What is the cost of new common stock based on the CAPM? (Hint: Find the difference between r1 and rs as determined by the DCF method, and add that differential to the CAPM value for rs.) d. If Skye continues to use the same market-value capital structure, what is the firms WACC assuming that (1) it uses only retained earnings for equity and (2) if it expands so rapidly that it must issue new common stock?5. Penguin, Incorporated, has balance sheet equity of $5.4 million. At the same time, the income statement shows net income of $783,000. The company paid dividends of $438,480 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 18, what is the target stock price in one year? Assume the firm will grow at the sustainable growth rate. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)As of the end of 2020, Microsoft had an annual net income of $51.3 Billion and total assets of $301.3 Billion. Microsoft's total book value of equity as of the end of 2020 was $118.3 Billon. Finally, Microsoft currently has 7.56 billion shares outstanding, and is priced at $243 a share. What is Microsoft's leverage, also known as its equity mulitplier (EM) (remember to use market value of equity)? 7.56 5.42 6.10 8.11
- Blue Co. earns P2,850,000 in 2021 and it has a total outstanding shares of 425,000. On 2022, the earnings increase by P1,087,500 and the number of outstanding shares increased by 25,000. The dividend per share of the firm is constant at 3.5. What is the Plowback ratio in 2022? (type the answer in percentage with “%”)Price Ratio Analysis (LO4, CFA8) The current price of Parador Industries stock is $67 per share. Current earnings per share is $3.40, the earnings growth rate is 6 percent, and Parador does not pay a dividend. The expected return on Parador stock is 13 percent. What one-year-ahead PE ratio is consistent with Parador’s expected return and earnings growth rate?.A company expects EPS to be $1 next year. The industry average P/E ratio is 3 and Enterprise multiple is 7.71. The EBITDA for the company is $37.61 million. The firm has debt and preferred stock of $4 million and 10 million shares outstanding. What is an estimate of the firm value using the method of comparables for enterprise multiple? Express your answer in millions of dollars rounded to two decimal places
- A company expects EPS to be $1 next year. The industry average P/E ratio is 3 and Enterprise multiple is 7.71. The EBITDA for the company is $37.61 million. The firm has debt and preferred stock of $4 million and 10 million shares outstanding. What is an estimate of the firm value using the method of comparables for enterprise multiple? Express your answer in millions of dollars rounded to two decimal places (for example, if you get $12,540,000, input 12.54 as your answer)At December 31, 2016, McKinley’s price-earnings ratio was 13.4. For 2016, McKinley’s net income was $660,000, its earnings per share was $7.00, and its annual dividend per share was $4.00.What was the per share market price of McKinley’s stock at December 31, 2016? Question 19 options: A) $53.60 B) $65.60 C) $93.80 D) $40.20Alfa Pharma, shows the following financials for the year ended TABLE BELOW EBIT is ₹ 50,00,000.00Debt Outstanding ₹ 25,00,000.00Rate Of Interest On Debt Is 12%Cost Of Equity Is 15%Number Of Shares Outstanding Is 5,00,000Book Value Per Share Is Rs10Tax Rate 0.50The company pays out all the earnings as dividend and the company is expecting zero growth for the future.Describe and calculate- Earning per share and Price of the share.
- New Age IT Solutions had net profit margin of 0.35 on sales of $5 000 000 during 2020. In addition, the firm’s total assets were $4 500 000, and its debt ratio is 0.45. Required: What was New Age IT Solutions’ return on equity (ROE) in 2020? What was return on assets (ROA) of the company in 2020? Calculate earnings per share (EPS) and price-earnings ratio (PE) of the company if it has total shares outstanding of 50,000 with a market price of $85 per share?q9- The following table shows the net profit achieved by Omega Ltd since 2012. It's current share price is $13.20 and it has 115,000 shares outstanding (which has not changed since 2012). It expects earnings to continue to grow at the same compound growth rate that it has enjoyed since 2012. Year Net Profit 2012 $429,000 2013 $477,000 2014 $526,000 2015 $574,000 2016 $622,000 2017 $671,000 2018 $719,000 What is the firm's trailing P/E ratio? a. 1.29 b. 1.94 c. 2.11 d. 2.99 Clear my choice1. How many shares should the company have outstanding in 2012 if its earnings available for common stockholders in that year are $1,200,000 and it pays a dividend of $2.00, given that its desired payout ratio is 40%?2. How many shares would Harte have to repurchase to have the level of shares outstanding calculated in no.6?