Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1) (3 pts) you estimate that company x will have e

1) (3 pts) You estimate that Company X will have earnings per share (EPS) of...

60.1K

Verified Solution

Question

Finance

image
1) (3 pts) You estimate that Company X will have earnings per share (EPS) of $4.00 next year and EPS 00 in year 2. You also estimate that Company X will sell at $95 in two years. The dividend payout ratio is expected to be 20%. a) What is your estimation of the intrinsic value of Company X if your required rate of return is 75% a5 Intrinsic Value If Co. X is currently trading at $80, would you consider the stock a good buy today Yes or No 2) (4 pts) You estimate that Company A will have EPS of $3.00 next year, $4.00 per share in year 2. The required rate of return is 8%, what is your estimate of Company A's intrinsic value if you expect the company to have a dividend payout ratio of 30% and sell at a P/E multiple (ttm) of 21 at the end of year 2? 13.25 Intrinsic Value = S If Company A is selling at $75.00 today, would you consider the stock to be a good buy today? Good Buy? (Yes or No

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

When deciding how to respond to discrimination, it is important to consider: Question 25 options: The level of...

Biology
1.2K views

Which statement below about nucleotides is TRUE?Base pairing occurs between the 5' and 3' carbons...

Algebra
1.2K views

Write the log equation as an exponential equation You do not need to solve for...

Algebra
1.2K views

Step 2 of 2 Find the formula for Answer 2023 Hawkes Learning f x x...

Algebra
1.2K views

Question 4 Jannet earned 15 20 8 18 12 20 10 16 and 25 by...

Algebra
1.2K views

Determine the quadratic function f whose graph is given The vertex is 4 3 and...

Accounting
1.2K views

141. On May 1, 2011, Pinkley Company sells office furniture for 90,000 cash. The office...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] On...

Accounting
1.2K views

What is Triple bottom line principles? How to apply triple bottom line principles in work...

Accounting
1.2K views

En su primer ao de operaciones, Cloudbox tiene ventas a crdito por valor de 236.000...

Finance
1.2K views

ADB Ltd. Has issued a 20% 4-year bond with interest payable annually. The face value...