Using the ​P/E ratio approach to​ valuation, calculate the value of a share of stock under the following​ conditions: a. the​ investor's required rate of return is 15 ​percent,
b. the expected level of earnings at the end of this year​ is ​$5
c. the firm follows a policy of retaining 50 percent of its​earnings,
d. the return on equity ​(ROE​) is 14 ​percent, and
e. similar shares of stock sell at multiples of 6.250 times earnings per share.

Now show that you get the same answer using the discounted dividend model.

a. The stock price using the ​P/E ratio valuation method is ​$.​ (Round to the nearest​ cent.)
b. The stock price using the dividend discount model is ​$. ​(Round to the nearest​ cent.)

While studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. you can't spare the time to pick up the pizza and must have it delivered. "pick-up-sticks" offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for $15 plus 5% sales tax and a $1.50 delivery charge (no sales tax on delivery charge). "fred's" offers the round, deep-dish sasquatch, which is 20 inches in diameter. it is 1-3/4 inches thick, includes two toppings, and costs $17.25 plus 5% sales tax and free delivery. 1. what is the problem in this situation? state it in an explicit and precise manner. 2. systematically apply the seven principles of engineering economy (pp. 3-6) to the problem you have defined in part (a). 3. assuming that your common unit of measure is dollars (i.e., cost), what is the better value for getting a pizza based on the criterion of minimizing cost per unit of volume? 4. what other criteria might be used to select which pizza to purchase?

Because the demand for wheat tends to be inelastic. true or false

Beranek corp has $720,000 of assets, and it uses no debt--it is financed only with common equity. the new cfo wants to employ enough debt to raise the debt/assets ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. how much must the firm borrow to achieve the target debt ratio? a. $273,600b. $288,000c. $302,400d. $317,520e. $333,396