Price earnings ratio for Glamour plc.
Not what you're looking for?
The company Glamour plc. has undertaken an investment of £1,000,000 from which it expects earnings of £50,000 next year, growing at 10% annually. Moreover, the company depreciates 5% of its capital each year and requires total capital expenditure (replacement expenditure and net new investment) of 8%. Company Value has the same investment outlay, depreciation and capital expenditure, but earnings growth of 5% and expected first period earnings of £100,000. Moreover, both companies have the same cost of capital of 15%.
Calculate the price earnings ratio for each company.
Purchase this Solution
Solution Summary
Price earnings ratio is found. The undertaken investments are provided.
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.