question 2 to 4a Table Tools Exam 2 FIN 430 Fall 2...

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Accounting

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Table Tools Exam 2 FIN 430 Fall 2 Design Layout References Mailings Review View Help Design Layout Tell me what you want to di I es New Ro - 12 AA A ... 21 AaBbcd AaBbcd AaBbC AaBbce U-abx x x A-YA 1 Normal 1 No Spac. Heading 1 Heading Font Paragraph 2. Calculate the price earnings (PE) ratio given the following data. Expected dividend per share is $1.67, Expected earnings per share is $4.75. and the growth in earnings is 2.5%, and the required return is 8.5% 7.5 pts 7.5 pts 3. a) If the payout ratio is 35%, growth in EPS is 2.5% and your required return is 8.5%, calculate the price carnings ratio. b) If earnings per share rises by $0.50 what would be the rise in stock price. 7.5 points 4. a) Calculate the implied return when the expected forthcoming annual dividend per share is $1.65 with a growth (in EPS) of 2.5% and a current price of $35. 7.(10 pts)

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