pepp Wrote: ------------------------------------------------------- > good job daj, > > now only if you can answer this one itll give you > a confidence boost. i kept it simple for y ou. > > Quotas placed above the equilibrium quantity: > A. increase marginal cost. > B. result in overproduction. > C. have no effect on output. > D. result in underproduccion. C, bring it on!!!

good job, another easy one, from another topic The Larson Corp. had revenue per share of $400 in 2002, earnings per share of $5.00, and paid out 50% of its earnings as dividends. If the return on equity (ROE) and required rate of return of Larson are 15% and 11 %, respectively, what is the appropriate PIS multiple for Larson? A. 0.12. B. 0.18. C. 0.19. D. 0.90.

good job, another easy one, from another topic The Larson Corp. had revenue per share of $400 in 2002, earnings per share of $5.00, and paid out 50% of its earnings as dividends. If the return on equity (ROE) and required rate of return of Larson are 15% and 11 %, respectively, what is the appropriate P/S multiple for Larson? A. 0.12. B. 0.18. C. 0.19. D. 0.90.

pepp Wrote: ------------------------------------------------------- > good job, another easy one, from another topic > > The Larson Corp. had revenue per share of $400 in > 2002, earnings per share of > 5.00, and paid out 50% of its earnings as \> dividends. If the return on equity \> (ROE) and required rate of return of Larson are \> 15% and 11 %, respectively, \> what is the appropriate P/S multiple for Larson? \> A. 0.12. \> B. 0.18. \> C. 0.19. \> D. 0.90. stuck here. i know you need to find find stock price and divide by 400 stock price use DDM and got 2.68/K- G) = 2.68/7.5% = 35 bucks or so 35/400 == .08??/ NEED HELP HERE

0.19 P/s= [5*1.075*0.5/(3.5%)]/400

daj, 2.68/(.11-.075) = 76.57 76.57/400 = .19

kant Wrote: ------------------------------------------------------- > daj, > > 2.68/(.11-.075) = 76.57 > > 76.57/400 = .19 thank you!!! i was a fool and use 15% as K instead of 11%, sorry! again, i rushed too much here i got it now. it is a simple DDM and instead of PE they want PS, that is the only “tweaker” here thanks agan