Ask Experts Questions for FREE Help !
Ask
    Xitlalic03's Avatar
    Xitlalic03 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Sep 10, 2012, 12:45 AM
    websites research projects a rate of return of 20%
    Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back 30% of all earnings into the firm. Earnings this year will be $3 per share, and investors expect a 12% rate of return on stocks facing the same risks as Web Cites.

    What is the sustainable growth rate?
    What is the stock price?
    What is the present value of growth opportunities?
    What is the P/E ratio?
    What would the price and P/E ratio be if the firm paid out all earnings as dividends?
    What do you conclude about the relationship between growth opportunities and P/E ratios?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Sep 10, 2012, 12:48 AM
    While we are happy to HELP we will NOT do the work for you.
    Show us what you have done so far and where you are having an issue and we'll go from there.
    Xitlalic03's Avatar
    Xitlalic03 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Sep 10, 2012, 10:30 AM
    Thank you very much, but I already got it. I don't want the answer I wanted to know how to started. The only way to learn is by making mistakes and I did for while but I finally got it. Thank you
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Average rate of return, net present value, internal rate of return, & payback period [ 3 Answers ]

CAM Company is evaluating a project requiring a capital expenditure of $619,200. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: Year Net Income ...

Internal rate of return, net present value, return on invextment [ 1 Answers ]

what do we mean by internal rate of return, net present value and average annual return on investments? What do they imply? And, how are they computed?

The rate of return on a proposal is less than the rate used in the analysis [ 1 Answers ]

if in evaluating a proposal by use of the net present value method there is an excess of present value over the amount to be invested, the rate of return on the proposal is less than the used in the analysis. true or false

View more questions Search