Corporate Finance

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Question

Answer the next eleven (11) questions on the basis of the following data for YTB, Inc: Earnings per share (EPS) over the last 12 months=$2.50 Earnings per share (EPS) over the next 12 months=$4.00 Current stock price=$45 Number of common shares outstanding=20,000,000 Restricted stock = 1,000,000 Annual dividend per share=$1.50 Expected annual growth rate in earnings over the next 5 years=5% Shares short=1,000,000 Average trading volume=10,000,000 shares 4. What is the trailing P/E ratio for YTB? (a) 18 (b) 11.25 (c) $38.5 (d) 15 5. What is the forward P/E ratio for YTB? (a) 18 (b) 11.25 (c) $38.5 (d) 15 6. What is the PEG ratio (use trailing P/E ratio) for YTB? (a) 3.1 (b) 4 (c) 2.5 (d) 3.6 7. What is the market capitalization for YTB? (a) $600m (b) $700m (c) $800m (d) $900m 8. What is the dividend yield for YTB? (a) 2.33% (b) 3.75% (c) 3.33% (d) 1.62% 9. What is the float for YTB? (a) 19m shares (b) 20m shares (c) 21m shares (d) 22m shares 10. What is the short % of float for YTB? (a) 10% (b) 5.26% (c) 8.26% (d) 5.0% 11. What is the short ratio for YTB? (a) 5% (b) 5.26% (c) 10% (d) 12% 12. What is the earnings yield (based on trailing EPS) for YTB? (a) 27.77% (b) 8.88% (c) 10% (d) 5.55% 13. What is the payout ratio (based on trailing earnings) for YTB? (a) 20% (b) 50% (c) 60% (d) 40% 14. What is the retention (or plowback) ratio for YTB? (a) 20% (b) 50% (c) 60% (d) 40% 15. Nachman Industries just paid a dividend of D 0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value? a. $41.59 b. $42.65 c. $43.75 d. $44.87 e. $45.99 16. Your portfolio has provided you with returns of 8.6 percent, 14.2 percent, -3.7 percent, and 11.4 percent over the past four years, respectively. What is the geometric average return for this period? A. 7.25 percent B. 7.40 percent C. 7.57 percent D. 7.63 percent E. 7.78 percent 17. You invest now $100,000 in investment JBS, you put an additional $200,000 a year later (year 1), you put an additional $400,000 two years later (year 2), and at the end of year 3 you sell the investment JBS and receive $1,000,000. What is the dollar-weighted return on this investment? A) 10.45% B) 15.98% C) 32.89% D) 24.42% Jan 21 2014 06:21 PM

 

Solution ID:609054 | This paper was updated on 26-Nov-2015

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