The Perfect Rose Co. has earnings of $1.70 per share. The benchmark PE for the...
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The Perfect Rose Co. has earnings of $1.70 per share. The benchmark PE for the company is 20 a. What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the benchmark PE were 23? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) a. Stock price at a PE of 20 Stock price at a PE of 23 b. Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $10 per share 10 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 11 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price 47
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