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Levin Inc earned 0.50 per share Its earnings this year were 2.20 What was the growth rate in Levin's earnings per share EPS over the 10-year period?
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∙ 14y ago
16%
Wiki User
∙ 14y ago
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What is real internal growth?
Real internal growth is the highest level of growth achievable for a business without obtaining outside financing. The internal growth rate for a public company can by found by taking a company's retained earnings and dividing it by total assets.
What are the factors that affecting price?
earnings and growth prospects,news of new products or planned services and the general state of the economy
What are the factors that affect stock prices?
earnings and growth prospects,news of new products or planned services and the general state of the economy
What does the value of stock represent?
The value of stock represents a fair value of an underlying company as perceived by market participants, mostly driven by expectations of future earnings growth.
The constant growth model takes into consideration the capital gains earned on a stock?
This question was originally listed as an answer option. The question was "Which of the following statements is most correct." This was the most correct of the following choices.The constant growth model takes into consideration the capital gains earned on a stock.It is appropriate to use the constant growth model to estimate stock value even if the growth rate never becomes constant.Two firms with the same dividend and growth rate must also have the same stock price.Statements 1 and 3 are correctAll of the statements above are correct.Answer 1 was the most correct of the choices.
What are the four factors of PE?
Expected growth of earnings, expected stability of earnings, expected inflation, and yields of competing investments.
What is a stock that reinvests its earnings in the business instead of paying dividends?
A growth stock.
How do I measure the growth when it comes to stock investing?
You have to see if the stock is growing in both sales and earnings. The price-to-earnings ratio is the best-known valuation gauge.
What are the traits of growth stocks?
There are a lot of different traits of good growth stocks. Two of the traits that connote a good stock are high profit margins and accelerating earnings growth.
How are growth rates used in evaluating stocks?
When evaluating a stock one should look at not only earnings but how those earnings are growing. The rate of growth helps to determine where the earnings will be next quarter, next year, or five years down the road. If you see a stock with a P/E (Price/Earnings) of 100 that is usually do to a high growth rate. The investers a paying a large premium for the company today due to the expected growth of the earnings for the company in the future. This type of investing tends to be more risky due to the fact that the company may fail to meet expected growth rates. On the other hand these stocks can exceed expected growth rates and reward investers who took a chance on them with stellar returns. Growth rates can also be used too compare one company to its peers. Companies in the same industy should have similar growth rates. Differences in these rates may indicate problems within a specific company. Price to earnings of 100 are quite impossible and if they appear it is best to avoid the stock since you will inevitably lose money.
What is a stock that reinvests its earnings in a business instead of paying regular dividends called?
a growth stock
What is the stock that reinvests its earnings in the business instead of paying regular dividend called?
a growth stock
What factors might influence a firm's price-earnings ratio?
The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors
If a firm retains all of its earnings then it will not need any additional funds to support sales growth?
False
What is a stock that reinvests it's earnings in the business instead of paying regular dividends called?
a growth stock
What is real internal growth?
Real internal growth is the highest level of growth achievable for a business without obtaining outside financing. The internal growth rate for a public company can by found by taking a company's retained earnings and dividing it by total assets.
What are the two fundamental questions in dividend policy?
the amount of growth the firm considers optimal and determining the protion of earnings to be paid out
