Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please help answer asap!! thank you consider pa

PLEASE HELP ANSWER ASAP!! THANK YOU Consider Pacific Energy Company and Atlantic...

60.1K

Verified Solution

Question

Finance

PLEASE HELP ANSWER ASAP!! THANK YOU

image

Consider Pacific Energy Company and Atlantic Energy, Inc., both of which reported earnings of $964,000. Without new projects, both firms will continue to generate earnings of $964,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a return of 12 percent. 1.5 points eBook Print a. What is the current PE ratio for each company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Pacific Energy Company has a new project that will generate additional earnings of $114,000 each year in perpetuity. Calculate the new PE ratio of the company. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Atlantic Energy has a new project that will increase earnings by $214,000 in perpetuity. Calculate the new PE ratio of the firm. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) References times a. b. c. P/E ratio P/E ratio P/E ratio times times

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

Basic Math
1.2K views

A pawn shop is open to purchasing goods that may not have been acquired through honest...

Chemistry
1.2K views

PleaseI need the procedure on how to solve this questions! Thanks!

Basic Math
1.2K views

Suppose that your hypotheses are H0: ? = 0.25 and Ha: ? < 0.25. In the...

Biology
1.2K views

ich is false of antibiotics and resistance a The efflux pumps enable resistance by decreasing...

Basic Math
1.2K views

Macmillan Learning Information concerning the fictitious small island nation of Llamalandia is given in the...

Basic Math
1.2K views

A solution is prepared by disserving 15.0 g of NH3 in 250.0 g of water....

Calculus
1.2K views

he given complex number a state the real part B state the imaginary or nonreal...

Algebra
1.2K views

2 A rope to the top making the How tall 3ooft S bong is allached...

Accounting
1.2K views

Bob and Betty are married filing jointly. They have two kids ages 4 and 8....

Accounting
1.2K views

Exercise 6-8 Deducing Changes in Inventories [ 5 Parker...

Accounting
1.2K views

A simplified balance sheet for Galaxy Cafe Inc. contain the following amounts at the end...

Accounting
1.2K views

Current Attempt in Progress Which of the following is not a true statement? Incremental analysis...