(DIV2013) / $ 30 (EPS 2013) = 0.67 Plowback ratio 2013 = $10.00 (RE per share 2013) / $ 30.00 (EPS 2013) = 0.33 Sustainable growth rate = 0.15 (rate of return) x 0.33 (plowback ratio) = 5 % Price per share 2012 = DIV2013/(r-g) = $20/(11%-5% ) = $ 333.33 $ 333.33 price per share x 400‚000 shares = $ 133‚333‚333 - value of the company in 2012 P/E ratio = $ 333.33( price per share) / 30 (EPS) = 11.11 Rapid Growth Scenario: Since Price = DIV / r-g‚ and there are
Premium Stock market Dividend yield Dividend
Jim Poss Case Study: Jim Poss Jim Poss is the owner of the Seahorse Power Company; a fresh startup specialized in the green energy based on environment friendly methods of power generating. Unfortunately‚ this choice of cleaner power based industry penalized Jim’s company as a major part of sales is seen lost. Jim accumulated experience and knowledge through many occupied jobs but the significant one was at Solectria‚ a manufacturer of transportation and energy systems. Opportunity follow up:
Premium Management Nuclear power Idea
Mini Case Report – The Dilemma at Day-Pro 1) PayBack Period for Synthetic Resin and Epoxy Resin: Synthetic Resin PBP = 2 + 250/200 = 2.5 years Epoxy Resin PBP = 1 + 200/400 = 1.5 years To show that using the Payback Period to evaluate the projects is flawed‚ Tim can argue that the PayBack Period ignores the time value of money‚ requires an arbitrary cutoff point‚ ignores cash flows beyond the cutoff date‚ and is biased against long-term projects‚ such as research and development‚ and new projects
Premium Net present value
Case 11-4 SUBJECT: Determining the Functional Currency of Sparkle Company Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture‚ 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria‚ being the Naira. During 2009‚ Sparkle had several transactions with its joint venture owners and outside parties. The
Premium Cost Generally Accepted Accounting Principles United States dollar
Introduction & Financial performance Interco originally began in 1911 as International Shoe Company and changed to Interco in 1966. It expanded into the consumer goods market mainly through acquisitions. In 1988 too‚ the company was a major manufacture of furniture‚ men’s footwear‚ and apparel‚ owning many American iconic brands such as Ethan Allen‚ London Fog‚ Converse and Florsheim. The firm’s financial goals included: 1. Improve long term sales and earnings growth 2. Improve return of shareholders’
Premium Stock market Capital Proposal
CASE STUDY 11 - LEADER PRICE Leader Price‚ founded in 1998‚ is ranked as the 5th biggest food retailer in France and has become on of France’s leading discount stores. Leader Price has been taken over by a Casino group with around 250 stores and it has expanded to other European countries such as‚ Belgium. France is known for a society that has value for money and spends wisely‚ keeping this into account Leader Price has done quite well in the country. They developed a new logo and interior for
Premium Pricing Customer Retailing
This case study examines a third-grade teacher‚ Jim Colbert‚ in a large inner-city school located in Northeast who has been teaching for 4 years. Colbert is expected to teach language arts using basal readers and a district required curriculum. Jim has been assigned to teach 3-A class for ‘bright’ students‚ which is an advanced class. Although‚ there is special concern about one student‚ Carlos‚ who seems to be lacking the ability to keep up with the advanced class. Carlos is from a Spanish-speaking
Premium Education Teacher School
Case 11-3 Master of the Universe TABLE OF CONTENTS Statement of facts……………………………………………... 3 Question 1…………………………………………………….. 5 Solution……………………………………………….. 5 Question 2…………………………………….......................... 6 Solution……………………………………………….. 6 Question 3…………………………………………………….. 7 Alternatives…………………………………………… 7 Solution……………………………………………….. 8 STATEMENT OF FACTS Saturn
Premium Planet Mars Solar System
portions of Cree history to establish an understanding of such a rich culture. I will focus on the teachings of Jim Kanepetetew and how “The Ten Treaty Sticks” have established a foundation of Cree culture. As a basis for guidelines‚ I will follow the oral teachings of Jim Kanepetetew. As per Jim Kanepetetew of the Onion Lake First Nation‚ there are unwritten words of history. In this case‚ where Kanepetetew explains “The Ten Treaty Sticks” it is clear the Cree people had instilled their own culture
Premium Canada First Nations Culture
Chapter 8. Mini-Case Assume that you have just been hired as a financial analyst by Triple Play Inc.‚ a mid-sized California company that specializes in creating high-fashion clothing. Because no one at Triple Play is familiar with the basics of financial options‚ you have been asked to prepare a brief report that firm’s executives can use to gain a cursory understanding of the topic. To begin‚ you gathered some outside materials on the subject and used these materials to draft a list of pertinent
Premium Option Call option Put option