Recto Co. has a price earnings ratio of 10, earnings per share of P2.00, and a pay out ratio of 75%. The dividend yield is a. 25.0% b. 22.0% c. 7.5% d. 10.0%
Q: The Pawlson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its…
A: WACC stands for Weighted Average Cost of Capital, which is defined as the computation of the cost of…
Q: The Paulson Company’s year-end balance sheet is shown below. Its cost of commonequity is 14%, its…
A: cost of common equity = 14.00% before tax cost of debt = 10% Tax rate = 40% Total debt = $1167…
Q: Calculate Paulson's WACC using market-value weights. Do not round intermediate calculations. Round…
A: WACC: It is the company's average cost of capital and is calculated by the total of all individual…
Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its…
A: WACC (weighted average cost of capital) refers to the average cost that is paid by a company to…
Q: Nathalie Company has earnings available for common shareholders of P700 produced by sales of…
A: The net income is the net profit of the company earned during the period. The net income includes…
Q: The Anderson Company has net profits of $20 million, sales of $250 million, and 4.5 million shares…
A: Net profit margin is calculated on on sales, the equation is Net profit margin =net profitsales*100
Q: A company has recently declared a dividend of 12p per share. The share price is £3.72 cum div and…
A: Price Earnings Ratio - Price earning Ratio shows the company's financial health of the company. This…
Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its…
A: Weighted average cost of capital (WACC) refers to the average cost that is paid by a company to…
Q: If cost of equity is 14 percent, Earnings per share is Rs.18, Dividend payout ratio is 40 percent…
A: Growth rate = Retention ratio * return on investment = (1 - Dividend payout ratio)* return on…
Q: XYZ Corp. has earnings of $75mln and is trading at a stock price of $64 per share. It has 20 million…
A:
Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its…
A: The Weighted Average Cost of Capital(WACC) refers to the financial ratio that calculates the overall…
Q: A company finances its operations with 60 percent debt and the rest using equity. The annual yield…
A: Given: Debt (D) = 60% Equity (E) = 40% Cost of debt (rd) = 4.1% Cost of equity (re) = 12.4% Tax =…
Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its…
A: To Find: WACC
Q: Little Book LTD has total assets of $860,000. There are 75,000 shares of stock outstanding, total…
A: Calculate the sales as follows: Total asset turnover ratio = net sales / Total assets 1.5 = Net…
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: Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity…
A: Given the following information: Debt-equity ratio: 0.75 Return on assets: 10.4% Total equity:…
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: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its…
A: The weighted average cost of capital is the average cost of capital of the firm based on the…
Q: If the common stock of Comdisco pays an annual dividend of $0.28, has a PE ratio of 11, and closed…
A: PE Ratio = Share Price / EPS
Q: Fama's Llamas has a weighted average cost of capital of 9.5 percent. The company's cost of equity is…
A: Calculation of Target Debt-Equity Ratio:The target debt-equity ratio is 0.91.Excel Spreadsheet:
Q: Fama's Llamas has a weighted average cost of capital of 10 percent. The company's cost of equity is…
A: Debt-Equity Ratio is long-term solvency ratio of company. It is calculated by dividing debt by…
Q: Lilly's Tax has an EPS of $2.40, a book value per share of $22.84, and a market/book ratio of 27X.…
A: The equity multiplier is a risk indicator that measures how much of a company's assets are funded by…
Q: A company has recently declared a dividend of 12 cents per share. The share price is $3.72 cum div…
A: A company has several sources from where it can raise funds. It can issue equity shares and the…
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: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its…
A: WACC is the weighted average cost of procuring funds from various sources such as equity, debt, etc.…
Q: Fama’s Llamas has a weighted average cost of capital of 10.4 percent. The company’s cost of equity…
A: WACC = 10.40% Cost of equity = 13% Pretax cost of debt =7.90% After tax cost of debt = Pretax cost…
Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its…
A: WACC: WACC stands for weighted average cost of capital. Formula: WACC = ( weightage of debt x after…
Q: Giantin Growing AG (GG) is currently selling for $38.50, with TTM EPS, and dividends per share of…
A: The question is related to Capital Asset Pricing Model. The CAPM is used to determine the required…
Q: Tomeco Co. has a WACC of 12 percent. Its debt sells at a yield to maturity of 6 percent, and its tax…
A: Equity to total asset ratio is the financial tool to determine the value of asset that the…
Q: Renew Company has an earnings per share (EPS) of $3.50, a value per share of $35, and a market value…
A: P/E ratio refers to the price earnings ratio of the company. It is obtained by dividing the market…
Q: Ocean Co. just paid a dividend of $2 per share out of earnings of $4 per share. If the book value…
A: Given information: Dividend (D)=$2 Earnings per share (EPS)=$4 Share price (P)=$25
Q: Company MNO has common stock with a market value of $9.15 and an annual dividend of $0.55. Company…
A: Yield on an investment is the earning made by the investor over a period of time. Higher the yield,…
Q: A company reports basic earnings per share of $5.40, cash dividends per share of $2.20, and a market…
A: The ratio analysis helps to analyze the financial statements of the business on regular basis. The…
Q: You are given the following information: Sales : OMR 100,000 Gross profit ratio : 15% Average stock…
A: Stock turnover ratio: Stock turnover is a ratio that measures the quantity of times inventory is…
Q: Sanedrin Company has an earnings per share (EPS) of $4.50, a value per share of $45 and a market…
A: EPS = $ 4.50 Value per share = $ 45 Market value per share = $ 38
Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its…
A: Data given: Cost of equity(Ke) = 16% Before-tax cost of debt (Kd) = 8% Tax rate (T) = 25% Total debt…
Q: A company has earnings per share of $9.00. Its dividend per share is $1.35, its market price per…
A:
Q: Messman Manufacturing will issue common stock to the public for $30. Theexpected dividend and the…
A: The rate of return that is expected by investors on their equity investment is term as the cost of…
Q: Fama's Llamas has a weighted average cost of capital of 9.7 percent. The company's cost of equity is…
A:
Q: A company had a market price of $27.50 per share, earnings per share of $1.25, and dividends per…
A: The ratio analysis helps to analyze the statements of the business including balance sheet and…
Q: alculate Paulson's WACC using market-value weights. Do not round intermediate calculations. Round…
A: WACC is the weighted average cost of capital. It is the average cost of all sources of capital i.e.…
Q: Ames, Inc., has a current stock price of $58. For the past year, the company had a net income of…
A: Given the following information: Current stock price: $58 Net income: $8,400,000 Total equity:…
Q: The Two Dollar Store has a cost of equity of 12.3 percent, the YTM on the company's bonds is 5.8…
A: Given: Cost of equity = 12.3% YTM = 5.8% Tax rate = 39% Debt to equity = 0.58
Q: The stock of North American Danduff Company is selling at $80 per share. The firm pays a divdend of…
A: Given Information: Stock price - $80 per share Dividend - $2.50 per share
Q: Upton Umbrellas has a cost of equity of 12.6 percent, the YTM on the company's bonds is 5.7 percent,…
A: Calculating the market value of debt and equity. We have,(a) Market value of debt = Book value of…
Q: A firm has a total book value of equity of $300,000, a market to book ratio of .33 (one-third), and…
A: Given information : The market value of a company refers to the market price of the stock per share…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- O'Brien Inc. has the following data: r RF=5.00%; RP M=6.00%; and b=1.10. What is the firm's cost of equity from retained earnings based on the CAPM? A. 11.83% B. 13.22% C. 11.25% D. 8.93% E. 11.60%O'Brien Inc. has the following data: rRf= 5.00% rPM = 6.00% b = 1.10 What is the firm's cost of equity from retained earnings based on the CAPM? a. 11.83% b. 13.22% C. 11.25% d. 8.93% e. 11.60%A company has earnings per share of $9.00. Its dividend per share is $1.35, its market price per share is $107.10, and its book value per share is $83. Its price-earnings ratio equals: Multiple Choice 11.90. 9.22. 6.67.
- O'Brien Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.70. What is the firm's cost of equity from retained earnings based on the CAPM? 15.20% 15.05% 17.33% 13.68% 15.35%A company paid $0.82 in cash dividends per share. Its earnings per share is $4.54 and its market price per share is $25.75. Its dividend yield equals: Multiple Choice 18.06%. 3.18%. 3.14%. ...The company's asset turnover is 0.9 payout ratio is 0.60 and price earnings ratio is 10, the dividend yield on common stock would be ___%?
- 16. O'Brien Inc. has the following data: TRF = 5.00%; RPM = 6.00%; and b = 1.10. What is the firm's cost of equity from retained earnings based on the CAPM? a. 11.83% b. 13.22% C. 11.25% d. 8.93% e. 11.60% istiqaMarj Corporation is currently selling for P22 per share. If it is selling at a Price-earnings ratio of 12, calculate Marj Corporation’s recent earnings per share. a. P1.83 b. P0.55 c. P2.20 d. P0.45Everest 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%
- A company has earnings per share of $9.80. Its dividend per share is $.60, its market price per share is $124.46, and its book value per share is $100. Its price-earnings ratio equals: Multiple Choice 10.20. 9.80. 8.70. 16.33. 12.70.If the common stock of Comdisco pays an annual dividend of $0.28, has a PE ratio of 11, and closed at 25, what are the current earnings per share? a. $7.00 b. $2.27 c. $3.08 d. $1.12You are given the following information Jamuna Ltd Market price per share Tk. 400 Earnings per share Tk. 25 Dividend per share Tk. 10 P/E ratio 8 times Required (Using Walter’s model) i) Cost of equity, ii) D/P ratio, iii) Retention ratio, iv) Internal rate of return,v)Growth rate