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Exhibit 12.5
Use the Information Below for the Following Problem(S)
An analyst wishes to estimate the share price for Ashley Corporation. The following information is made available:
Estimated profit margin = 15%
Total asset turnover = 2
Financial leverage = 1.2
Estimated dividend payout ratio = 75%
Required rate of return = 14%
Estimated EPS = $2.50
-Refer to Exhibit 12.5.Calculate the firm's estimated share price.
Telecommuting
Working from home or outside the office at least part of the time.
Part-Time Work
Employment with fewer hours per week than a full-time job, often offering flexibility but with fewer benefits than full-time positions.
Compressed Workweek
A work schedule that allows a full-time job to be completed in less than five days.
Increased Fatigue
A condition of heightened exhaustion resulting from intense physical or mental activity.
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