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Author Question: Global Warning's EPS for the current year is $2.75 and its current P/E ratio is 50. You have ... (Read 74 times)

mccallkeeler

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Question 1

Even if a company does not officially follow a fixed-dividend policy, dividend payments are
◦ extremely difficult to predict.
◦ very volatile and subject to economic conditions.
◦ fairly stable from one time period to another.
◦ directly tied to a company's P/E ratio.

Question 2

Global Warning's EPS for the current year is $2.75 and its current P/E ratio is 50.  You have forecasted that EPS will grow by 10% but the P/E ratio will fall to 40.  What do you expect the price of a share of GW's stock to be at the end of next year?
◦ $110
◦ $121
◦ $137.50
◦ $151.25


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Marked as best answer by mccallkeeler on Mar 29, 2022

Sophia0717

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mccallkeeler

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


Perkypinki

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Reply 3 on: Yesterday
Wow, this really help

 

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