Suppose that Home Depot, Inc. (HD) is currently holding shares of Apple Inc. (AAPL) and Autozone Inc. (AZO). It owns 57% of AAPL and 43% of AZO. The market values of shares are $2,910,800 and $5,710,200, respectively. HD has total 48,750 shares outstanding. Based on the efficient market approach, the per-share value of HD is closest to OA. $98.15. B. $92.70. O C. $84.40. O D. $73.79.
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- The following question is based on the following information about the stocks of Whitestone REIT, HCC Insurance Holdings, Inc., and SanDisk Corporation.† Price($) Dividend Yield(%) WSR(WSR Whitestone REIT) 16 7 HCC(HCC Insurance Holdings, Inc.) 56 2 SNDK(SanDisk Corporation) 80 2 You invested a total of $12,400 in shares of the three stocks at the given prices, and expected to earn $328 in annual dividends. If you purchased a total of 250 shares, how many shares of each stock did you purchase? WSR shares = HCC shares = SNDK shares =Manufacturer ABC has earnings per share of $3.30 and EBITDA of $40.7 million. The company also has 6.4 million shares outstanding. You believe that XYZ Corporation is comparable to ABC in terms of its underlying business, and it has a P/E of 14.3. Estimate the value of ABC’s shares using P/E as a valuation multiple (to the closest integer)Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.67 and a book value of equity of $8.83 per share, a price to book ratio of 2.84 and P/E ratio 15.01. Estimate KCP’s share price based on PE ratio. Estimate KCP’s share price based on price to book ratio.
- The following question is based on the following information about the stocks of Whitestone REIT, Tokio Marine Holdings, Inc., and Seagate Technology Holdings PLC.† Price ($) Dividend Yield (%) WSR (WSR Whitestone REIT) 10 4 TKOMY (Tokio Marine Holdings, Inc.) 53 4 STX (Seagate Technology Holdings PLC) 84 3 You invested a total of $7,850 in shares of the three stocks at the given prices, and expected to earn $272 in annual dividends. If you purchased a total of 200 shares, how many shares of each stock did you purchase? WSR= ? shares TKOMY= ? shares STX= ? sharesQuestion 2 The following information relates to A Ltd and B Ltd Two companies which operate in the same industry and listed on the stock markets. All figures are in Ghana Cedis Summarized Profit and Loss Account A. Ltd. 80,000 B Ltd Operating profit 80,000 Interest paid 10,000 40,000 Profit after interest 70,000 Dividend paid 20,000 40,000 25,000 Retained Profit 15.000 50.000 Summarized Balance Sheet A Ltd. B Ltd Total Assets less Current liabilities 600,000 600,000 Financed by: Ghc 1.00 Ordinary shares 100,000 100,000 Reserves 100,000 400,000 10% Unsecured Loan stock 400.000 100.000 600.000 600.000Corporation X, with a current market value of P62, gave a dividend of P9 per share for its common stock. Corporation Y, with a current market value of P90, gave a dividend of P11 per share. Which company has higher stock yield ratio?
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