judy's boutique just paid an annual dividend of $2.71 on its common stock. the firm increases its dividend by 3.45 percent annually. what is the company's cost of equity if the current stock price is $39.88 per share?

Answers

Answer 1

If the current share price is $39.88, the cost of equity for the corporation would be 10.1%.

What is current share price?

Current share price is the last traded price for a share of stock or any other security. The present price serves as the starting point in an open market. It shows the price that a buyer and seller would be prepared to accept for a subsequent transaction involving that security.

Calculating the cost of equity uses the following formula:

(DPS/MPS) + r DPS = Dividend per share

Market price per share is MPS, and dividend growth rate is r.

Equity cost = (2.71/39.88) +0.0345

Equity cost = 0.067 + 0.0345

Equity cost = 0.1015 10.1%

If the current share price is $39.88, the cost of equity for the corporation would be 10.1%.

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Related Questions

what is the impact of atm on banking sector? ​

Answers

Answer:

Explanation:

ATM s are of great use to the banks as the reduce the number of people storming the banks for withdrawal of money as well as deposit of money it reduces cost of operation and from customer point of view it is available easily near by hence travelling further distance to the bank is not required

ATMs are one of the most convenient services provided by the banks to customers. It is beneficial to banks as it is to its customers. It helps banks to save cost and time in withdrawing money and various other services which are now provided by ATM.

Automated teller machines, or ATMs as they are more commonly referred to, are a convenient way to conduct one-on-one transactions quickly and easily. One can do self-serviced transactions with these machines without a physical teller's aid or a trip to the bank branch. Cash withdrawals, cash deposits, and fund transfers are just a few of the many transactions possible with automated teller machines, or ATMs. Although the majority of customers only use ATMs to withdraw cash, these additional transactions make the service more effective.

With the advent of the ATM, users' financial lives became simpler because they could now perform simple transactions on their own with the aid of an ATM, which was much more practical than often visiting the bank. The ability for users to transact between banks is another significant advantage of an ATM. This means you can still use basic services like cash withdrawals from the ATM even if you don't have an account with the bank that runs the machine. Again, this saves you time and comes in handy in an emergency because you won't need to go to the ATM at your bank every time you need a quick infusion of cash. ATM helps banks operate more cheaply by lowering the number of human operations. The ATM provides service 24 hours a day which means customers can avail of money and other services at any time of the day.

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True or False: Labor is usually your lowest expense.

Answers

Answer:

False, if your talking about workinghard it is false bc you could break a bone or worse in the work of labor

False, still bc if your talking about having a child than your losing a lot of blood and pain is coming from it

so eathier way u go its still false

hoped this helped let me know if it did

You've been meaning to fix those rotted boards on your porch for years. Finally, last week the deck gave way. The replacement will cost you $3,000. Will you be able to recover the cost of replacement (less your deductible) from your homeowner's insurance?

Answers

We will not be able to recover the cost of replacement (less deductible) from the homeowner's insurance policy.

What is homeowner's insurance?

This is an insurance that provide cover on the insured's home's structure and belongings in the event of a destructive event such as a fire, storm, hurricane, lighting, flood etc

A natural destruction resulting from a wear and tear is not covered under the homeowner's insurance.

Therefore, you will not be able to recover the cost of replacement from the homeowner's insurance policy.

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__________ are a collection of something involving physical items or data that is used in a business process.

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Inventories are a collection of something involving physical items or data that is used in a business process.

These inventories play a crucial role in various business activities, including manufacturing, distribution, and retail operations. Inventories are typically classified into three main categories: raw materials, work-in-progress, and finished goods. Raw materials are the unprocessed elements required to produce a product or service, such as raw metal, wood, or textiles. Work-in-progress inventories consist of partially completed products that are still undergoing the production process. Finished goods are the final products that are ready for sale to customers.

Effective inventory management is essential for businesses to optimize production, minimize costs, and meet customer demands. This process involves tracking and controlling the levels of raw materials, work-in-progress, and finished goods to ensure that adequate stocks are available when needed. Businesses use various inventory management techniques, such as just-in-time (JIT) and economic order quantity (EOQ), to streamline their operations and prevent stockouts or overstock situations. Inventories also serve as a source of data for businesses to analyze their performance and make informed decisions.

By monitoring inventory levels, companies can identify trends, forecast future demands, and make strategic adjustments to their production and distribution processes. In summary, inventories are an essential aspect of business operations, encompassing the physical items and data necessary for production, distribution, and retail activities. Proper inventory management enables businesses to optimize their processes, minimize costs, and meet customer expectations while utilizing data to drive strategic decision-making.

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pxg co. has total assets of $10,400,000 and a total asset turnover of 2.54 times. assume the return on assets is 12 percent. what is its profit margin? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

PXG Co. has $10,400,000 in total assets and a total asset turnover of 2.54. Suppose the asset return is 12 percent. Its profit margin is 4.72%.

How is the profit margin calculated?

The profit margin of a business is calculated as the profit (sales less all costs) divided by the revenue. By comparing profit to sales, the profit margin ratio illustrates how effectively a business is managing its overall finances. Every time, it is expressed as a percentage.

Profit margin is calculated by multiplying revenue by profit (by 100). A net profit margin and a gross profit margin are the two types of profit margins (smaller).

We need the net income and sales in order to calculate the profit margin. We can calculate sales using total asset turnover, and net income using return on assets. Starting with the whole asset turnover, we discover that sales are:

Total asset turnover = Sales / Total assets

2.54 = Sales / $10,400,000

Sales = $26,416,000

As for the net income:

ROA = Net income / Total assets

0.12 = Net income / $10,400,000

Net income = $1,248,000

Now that we have the profit margin, it is:

Profit margin = Net income / Sales

Profit margin = $1,248,000 / $26,416,000

Profit margin = 0.0472 or 4.72%

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for human services pleaseeeeeeeeeeee help <3

for human services pleaseeeeeeeeeeee help &lt;3

Answers

Answer:

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why adding payment options in the stands can increase a fan’s satisfaction at a sports
event?

Answers

The results of a partial least squares structural equation modeling analysis imply that aspects of the stadium, club management, and the fan-based support for the club are the most important determinants of fan satisfaction.

- BRAINLIEST answerer

Answer: The costumer would find it better and easier, which means sport event will make more profit because the fans are satisfied.

Hope this helped!

A client is unhappy with his or her registered representative due to a misunderstanding over a trade. How long does he or she have to file for arbitration?

Answers

Answer:

6 years

Explanation:

Registered representatives do certainly notify their employer of their activities. Lack of communication can bring about misunderstanding and disagreement.

Arbitration is simply known as private and adversarial dispute settlement or resolution process. It involves the disputants tendering their proofs and arguments to a neutral third party who has the power to issue a binding decision based on standards whiich are objectives in nature.

When an increase in demand for stand-up paddleboards rises, then the demand for skilled paddleboard shapers _____, and their marginal revenue product _____.

Answers

When there is a rise in the demand for stand-up paddleboards, there is also a rise in the need for competent paddleboard shapers and a rise in their marginal revenue product.

Demand for paddle board makers or shapers will rise as the demand for paddle boards develops because more paddle board makers are needed to produce more paddle boards. Prices When there is a rise in the demand for stand-up paddleboards, there is also a rise for paddle boards increase as demand for them increases.

A higher paddle board pricing will result in a higher marginal revenue product since the marginal revenue product is calculated by multiplying the paddle board's price by the maker's marginal product.

Marginal Product = Marginal Product * Paddle Board Price.

Due to increased demand, paddle board prices will increase, which will result in an increase in marginal revenue.

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ation in Business organizations
5
Select the correct answer.
Which phrase correctly defines the motives of a business?
OA. satisfying the needs of people
OB. helping a country's economy grow
OC. incurring expenses
OD. earning profits and providing value in the form of goods or services

Answers

Answer:

D. earning profits and providing value in the form of goods or services

Explanation:

Businesses are set-up to make profits. Entrepreneurs risk their resources, capital, and time with expectations to make a profit. For a business to be profitable, it must offer products or services that provide solutions to customers' problems. The reward or motivation that business people get for engaging in business is the profits realized.

Businesses face competition from other businesses offering the same products and services. To remain relevant and profitable, it must offer goods and services that give satisfaction to the customers.

Drag each option to the correct location.
Match the scenarios to the factors that affect the labor market.
foreign direct investment
outsourcing
immigration

Answers

Each scenario should be matched to the factors that affect the labor market as follows:

Immigration: Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.Foreign direct investment: A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.Outsourcing: A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.

What is immigration?

Immigration can be defined as the movement of a group of people from one geographical region to another geographical destination such as a city, especially in search of any of the following:

Good governanceSecurityBetter living conditions.WorkJobsSocial amenities

What is a foreign direct investment?

A foreign direct investment (FDI) simply refers to a type of investment which is made by an individual or business organization (investor) into an investment market that is located in another country.

In conclusion, an example of foreign direct investment (FDI) is a US supermarket chain that is planning to open a few supermarkets in a country in Europe.

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Drag each option to the correct location.Match the scenarios to the factors that affect the labor market.foreign

Answer:

Post Test: Free Market and Businesses

Unit: 2

Economics

Question #12

__________________________________________________________

This is 100% right because I took the test

Go to explanation for picture with answers

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l

Explanation:

Here's the picture and I hope this helped!

Have a nice day!

Drag each option to the correct location.Match the scenarios to the factors that affect the labor market.foreign

Customer Center activities Required For each of the following activities in the Customer Center, state the tab, item on a list, and/or icon you will use to perform the activity. In some cases, you will need more than one of these. P-2-2. a. State the tab, item on a list, and/or icon you will use to perform maintenance for a new customer. b. State the tab, item on a list, and/or icon you will use to prepare a list of all sales invoices for a period of time without printing the list. c. State the tab, item on a list, and/or icon you will use to print a list of all active customers, including the account balance receivable from each customer d. State the tab, item on a list, and/or icon you will use to export a list of all sales invoices for a period of time to Excel.

Answers

a. Customers Tab b. Sales tab c. Customer tab<Create Statements<Open Balance d. Excel icon.

a. To perform maintenance for a new customer in the Customer Center, you will click on the "Customers" tab, select the new customer from the list, and click on the "Edit Customer" icon (pencil icon) located at the top of the list. This will open up the customer's information for editing.

b. To prepare a list of all sales invoices for a period of time without printing the list, you will click on the "Sales" tab, select "Customers" from the list on the left-hand side, and then select "Invoices" from the sub-menu. From there, you can adjust the date range for the invoices and then click on the "Excel" icon (located at the bottom right of the list) to export the list to Excel.

c. To print a list of all active customers, including the account balance receivable from each customer, you will click on the "Customers" tab, select "Create Statements" from the sub-menu, and then select "Open Balance" from the options. This will generate a list of all active customers with their account balance, which can then be printed using the printer icon.

d. To export a list of all sales invoices for a period of time to Excel, you will follow the same steps as in part b above, but instead of clicking on the "Excel" icon at the bottom right of the list, you will click on the "Export" icon (located at the bottom left of the list) and select "Export to Excel." This will export the list to Excel for further analysis.

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You are managing a project to build an urgent care clinic. Your company is expanding and has constructed 25 clinics so far. Which estimating technique makes the most sense to use in this situation?

Answers

Answer:

Delphi technique

Explanation:

The Delphi model is a technique of group communication in which a panel of experts reach consensus on a set of questions and discussions. This is used to predict or to forecast. First, choose an effective facilitator and experts with relevant expertise, and ensure that the issue is well established after that they reach with a decision

Therefore in the given case, the delphi technique is used

Ed lives in Merchantville , a state that has a so-called merchant protection statute (or shopkeeper's privilege). One day Ed goes to the grocery store to shoplift some steaks for dinner. The owner of the grocery store catches Ed red-handed in the act of shoplifting. He and an employee gently restrain Ed in the back room, feeding him gourmet food and wine until the local sheriff finally shows up three days later. If Ed sues the grocer for the tort of false imprisonment, he will win if he can prove that

Answers

Answer:

the gourmet food that he was fed was poorly prepared

Explanation:

Shopkeeper's priviledge is the law that allows United States shop owners detain people that shoplifted from their shop.

They must have proof that the person did the crime and also are only able to hold him for a reasonable time.

In the given scenario the shop owner catches Ed red-handed in the act of shoplifting. He and an employee gently restrain Ed in the back room, feeding him gourmet food and wine until the local sheriff finally shows up three days later.

Ed can win a tort of false imprisonment if the gourmet food that he was fed was poorly prepared.

There must be proper care given while the suspect is being detained. Being fed poorly prepared food means he was detained under conditions that could be detrimental to his health

What are the primary reasons why businesses should establish health and safety policies? Check all that apply.

to help maintain productivity
to protect the welfare of workers
to prevent the need for labor unions
to help maintain morale in the workplace
to improve the goods and services produced
to reduce costs for workers' compensation insurance​

please respond quickly. EDGE2021

Answers

Answer: To help maintain productivity, to protect the welfare of workers, to help maintain the morale of the workplace, to reduce the cost for workers’ compensation insurance

Explanation: I just completed the assignment

The primary reason, Businesses should establish health and safety policies were to help maintain productivity.

What is Business?

An innovative company or group that engages in professional activities is referred to as a business. They could be industrial, commercial, or something else. Businesses that are for-profit operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.

The health and safety policies help businesses: Prevent workplace injuries and illnesses. Improve compliance with laws and regulations. Reduce costs, including significant reductions in workers' compensation premiums.

The Research shows that workers are more productive in workplaces that are committed to health and safety. Reducing downtime caused by illness and accidents means less disruption.

Therefore, Thus option (A) is correct.

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For a customer of Lush, how will their MVV translate to your experience?

For an employee of Lush, for example a shop worker – how might the companies MVV affect your working life, your daily experience and your perspective of the business?

Answers

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Required information Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing special-purpose Lego parts. Method 1 will have an initial cost of $480,000, an annual operating cost of $110,000, and a life of 3 years. Method 2 will have an initial cost of $580,000, an operating cost of $110,000 per year, and a 6-year life. Assume 9% salvage values for both methods. Lego uses an MARR of 11% per year. Which method should it select on the basis of a present worth analysis? The present worth of method 1 is $1 and that of method 2 is $[ Method is selected.

Answers

The company should select Method 1 on the basis of a present worth analysis is $792,394.

Let's calculate the present worth of both methods.

PW1 = -480,000 - 110,000(A/P, 11%, 1) - 110,000(A/P, 11%, 2) + 0.09(480,000) + 0.09(110,000)(A/F, 11%, 3)

PW1 = -480,000 - 110,000(0.901) - 110,000(1.704) + 43,200 + 0.09(110,000)(0.31)

PW1 = -$461,183

PW2 = -580,000 - 110,000(A/P, 11%, 1) - 110,000(A/P, 11%, 2) - 110,000(A/P, 11%, 3) - 110,000(A/P, 11%, 4) - 110,000(A/P, 11%, 5) - 110,000(A/P, 11%, 6) + 0.09(580,000) + 0.09(110,000)(A/F, 11%, 6)

PW2 = -580,000 - 110,000(0.901) - 110,000(1.704) - 110,000(2.511) - 110,000(3.144) - 110,000(3.717) - 110,000(4.233) + 52,200 + 0.09(110,000)(0.506)

PW2 = -$792,394

As PW1 is positive and PW2 is negative, thus the company should select Method 1 on the basis of a present worth analysis.

Therefore, the answer is $792,394.

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the immunoglobulin class that has an fc region that binds to receptors on basophils and mast cells is

Answers

Answer:

Explanation:

When a person is exposed to an allergen, such as pollen or certain food proteins, their immune system can produce IgE antibodies specific to that allergen. These IgE antibodies then bind to Fc receptors on the surface of basophils and mast cells, which are types of immune cells found in tissues throughout the body.

Once the allergen comes into contact with the bound IgE antibodies, it triggers the release of various chemical mediators, such as histamine and leukotrienes, from the basophils and mast cells. These mediators cause the symptoms associated with allergies, including itching, swelling, and inflammation.

Overall, the binding of Ige to basophils and mast cells is a crucial step in the allergic response, facilitating the release of inflammatory mediators that contribute to the allergic symptoms experienced by individuals.

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Fill in the missing words. (Seroll through the dropdown to see all potential answers) For a bicycle manufacturer, a vendor who provides three models of padded seats would be a providing a Another company providing rubber to the wendor that makes wheels for the bicycle mancifacturer would be a 2nd tier suppliet Other parts of the bicycle supply chain include the distribution cenfer and a retail stere. both providing a If a customer can pick the seat model, frame color. and handlebar style, the design is and

Answers

The bicycle supply chain encompasses a variety of different elements, including manufacturers, vendors, distributors, and retail outlets. The relationship between each of these entities is crucial for ensuring that bicycles are produced and delivered efficiently.

For a bicycle manufacturer, a vendor who provides three models of padded seats would be providing a component. This is because padded seats are one of many individual parts that are used to build a complete bicycle. Other common components include wheels, handlebars, and frames.

Another company providing rubber to the vendor that makes wheels for the bicycle manufacturer would be a second-tier supplier. This is because the company is not directly involved in the production of the bicycle, but rather provides materials that are used to create one of its components.

Other parts of the bicycle supply chain include the distribution center and a retail store. Both of these entities play a crucial role in getting the bicycle from the manufacturer to the end consumer.

The distribution center is responsible for storing and transporting bicycles and components, while the retail store is responsible for selling the bicycles to customers. If a customer can pick the seat model, frame color, and handlebar style, the design is customizable.

This means that the customer has the ability to choose from a variety of different options to create a bike that meets their specific needs and preferences.

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A recent high school graduate is researching ways she can pay for her college education. She has received three small scholarships, but still needs to pay for
most of the tuition herself. Which of these options may be available to help her pay for her education? Select all that apply.
A. mortgage loan
B. Perkins loan
C. private loan
D. Stafford loan
E. payday loan
E business loan

Answers

Answer:

C and D

Explanation:

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In its definition of employee, FICA clearly distinguishes between classes or grades of employees. True False

Answers

The given statement "In its definition of employee, FICA clearly distinguishes between classes or grades of employees" is false because the definition of employee under the Federal Insurance Contributions Act (FICA) does not explicitly distinguish between classes or grades of employees.

FICA defines an employee as an individual who performs services for an employer, and the determination of whether someone is an employee or an independent contractor is based on various factors such as the degree of control exerted by the employer over the worker.

The classification of employees into different classes or grades may be relevant for other purposes, such as employment classifications within an organization or for determining wage scales, benefits, or job titles. However, FICA itself does not provide explicit distinctions based on classes or grades of employees.

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which part of a closing disclosure details the total amount of all payments on the loan, the dollar amount of the finance charges over the life of the loan, the amount financed, the apr and the tip?

a. contact information
b. confirm receipt
c. loan calculations
d. other disclosures

Answers

The correct answer is: c. loan calculations. The details regarding the total amount of payments, finance charges, amount financed, APR, and tip can be found in the "loan calculations" section of the closing disclosure (option c).

The section of the closing disclosure that details the total amount of all payments on the loan, the dollar amount of the finance charges over the life of the loan, the amount financed, the APR (Annual Percentage Rate), and the tip is the "loan calculations" section.

This section provides important information related to the loan, including the total cost of the loan, the interest charges, the amount being borrowed, the annual interest rate, and any additional fees or charges associated with the loan. It helps borrowers understand the financial implications of the loan and make informed decisions.

Conclusion: The details regarding the total amount of payments, finance charges, amount financed, APR, and tip can be found in the "loan calculations" section of the closing disclosure (option c).

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A country that pays out more for imports more than it receives for exports is
said to have

A. a negative balance of payments

B. a positive balance of trade

C. a negative currency balance

D. a positive balance of payments

Answers

smilebassett :

C. a negative currency balance

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A country that pays out more for imports more than it receives for exports issaid to haveA. a negative

A Country that pays out more for imports more than it receives for its exports is said to have a Negative Currency Balance.

What is Imports?

Import is the process of buying goods from a foreign country in order to fulfill the needs and demands of own country or to resell such products to gain commission.

What is Exports?

Selling of Goods from own country to another country is known as Export. It is done when a country produces any commodity in excess quantity and wants to sell it worldwide.

What is Negative Currency Balance?

Negative Currency Balance refers that the outflow of money is more that inflow which means import is more that export. It results to the increase of Assets of that foreign country and negative capital balance of the own country.

Hence Option C is the correct answer.

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Tonya lives in Texas. On a trip to Kansas her car broke down in Oklahoma. She used a gas station bathroom but did not buy gas. When she got to Kansas she refueled her vehicle and attended her conference where she ate food and purchased a trinket. She paid a sales tax on the trinket. On her way back she detoured to Colorado and marveled at the beauty of the bighorn sheep and the North American river otter. In which states was Tonya a free rider?

Answers

Answer:

Oklahoma (used a gas station bathroom but didn't by gas)

Explanation:

A free rider is someone that benefits from using a service or a product but that doesn't pay for it. E.g. a person that lives in city A and travels to city B and uses public parks. The parks are financed through taxes paid by residents of city B, since you pay your taxes in city A, you are a free rider in city B.

Her trip to Colorado wouldn't be considered a free ride since the bighorn sheep and the river are things that occur naturally and no one paid to make them.

sales mix is the proportion of _____ for various products.

Answers

Answer:

sales volume

Explanation:

Sales mix is the proportion of sales volume for various products. Sales mix is the proportion of individual product accounts are the company.

What is sales mix?

The term sales mix refers to the sales a single product accounts for in a company’s total sales. It was the easy to the fast-paced sales analytics is the one and more. It was understand the profit margin. The sales mix is a preparation that specifies the proportion of each commodity a company sells relative to total sales.

According to the sales mix is a deliberation that determines the proportion of each commodity a company sells relative to total sales. A particular product was the number of units sold is called the sales volume. It was the increases in the sales volume of the was the time management was the necessary.

As a result, the significance of the sales mix are the aforementioned.

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Self-assessments must always be formalized instruments of
measurement.
O True
O False

Answers

Answer:

true I believe I'm not completely sure though

Explanation:

a manufacturer, whose marr is 9%, is considering two alternative plant layouts, a1 and a2. the first cost represent the expenses of rearranging the current layout to the alternative new layout and the annual savings represent the reduction in the production costs of the new layout compared to the current layout. using the internal rate of return as the decision criterion, what course of action do you recommend? year a1 a2 first cost 0 $100,000 $140,000 annual savings 1 to infinity $11,000 $15,000 group of answer choices select alt a1 because its rate of return, 11.00%, is higher than the marr select alt a2 because it generates more savings in each year. select alt a2 because its rate of return, 10.71%, is higher than the marr select alt a2 because it is the more expensive option and the incremental rate of return, 10.00%, is higher than the marr

Answers

Based on the IRR analysis, the recommended course of action would be to select alternative A2 because it generates more savings in each year, even though its IRR is slightly lower than the MARR.

For alternative A1, Using a financial calculator or spreadsheet program, the IRR is calculated to be 11.00%. Which is higher than the manufacturer's minimum acceptable rate of return (MARR) of 9%.

For alternative A2, the IRR for alternative A2 is calculated to be 10.71%. Since the IRR for alternative A1 is higher than the MARR, it can be considered a financially feasible option.

However, alternative A2 generates more annual savings, so it may be more attractive to the manufacturer in the long run.

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Please post detailed answers to the following questions. Please use complete sentences. Why is money management important? How would you rate your own money management?

Answers

One of the most crucial aspects of you financial life is money management.

Why is proper money management important?

Reaching your financial objectives, paying off debt, and increasing your savings can all be facilitated by understanding how to budget, spend, and save.It is strongly advised that students create a budget for each category, such as food, phone, travel, etc. Any person should be very aware of where their funds are coming from and going. You may find out where you overspend and where you waste money by keeping track of your costs. Your money remains in good shape if you consistently spend less as you make.

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What is the relationship between costs of materials and distribution channels?

Answers

Answer:

A distribution channel is the set of steps it takes for a product to get in the hands of the key customer or consumer. Distribution channels can be direct or indirect. Distribution can also be physical or digital, depending on the kind of business and industry.

Explanation:

the market capitalization rate on the stock of aberdeen wholesale company is 10%. its expected roe is 12%, and its expected eps is $5. if the firm's plowback ratio is 50%, its p/e ratio will be

Answers

10% of Aberdeen Wholesale Company's shares is currently valued on the market. The estimated returns on equity are 12% and $5, respectively. The company's p/e ratio will be 12.5 if its plowback ratio is 50%.

What is meant by Ratio?When two objects are related using numbers or amounts, the relationship is known as a ratio. In a room with ten males and thirty girls, for instance, the boy to girl ratio is 1:3, or one to three. Ratios quantify the connection between two or more financial statement components. When results from different time periods are compared, they are most useful. This enables you to track the success of your business over time and find warning signals of disaster.Ratios compare two numbers, typically by dividing them. Your formula would be A/B if you were comparing data points A and B. This indicates that you are dividing information A by information B.


Therefore,

Dividend payout ratio = 1 − 0.5 = 0.5

Expected dividend = 0.5 × $5 = $2.50

Growth rate = 0.5 × 12%

= 6%Value

= $2.50/(0.10 − 0.06)

= $62.50

P/E = $62.50/$5 = 12.5

Hence, 10% of Aberdeen Wholesale Company's shares is currently valued on the market. The estimated returns on equity are 12% and $5, respectively. The company's p/e ratio will be 12.5 if its plowback ratio is 50%.

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