Early in 2015, Mathew Is Analyzing Shares of Janeff Corp

question 39

Multiple Choice

Early in 2015, Mathew is analyzing shares of Janeff Corp.He expects the following dividends per share (end of year) .
2015 $1.00
2016 $1.25
2017 $1.50
He expects 2017 earnings per share to be $4.50 and Janeff's P/E ratio to be 20.His required rate of return for this stock is 12%.He should pay no more than

• A)$43.75 per share.
• B)$67.02 per share.
• C)$68.75 per share.
• D)$93.75 per share.

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Definitions:

FVTPL

Fair Value Through Profit or Loss, a classification under International Financial Reporting Standards for financial assets held for trading or designated upon initial recognition as measured at fair value, with changes in fair value recognized in profit or loss.

FVTOCI

stands for Fair Value Through Other Comprehensive Income, a classification under IFRS for financial assets that are measured at fair value with fluctuations recorded in other comprehensive income.

Share Price

The price at which a single share of a company's stock is bought or sold in the market.

ASPE

Accounting Standards for Private Enterprises, a set of accounting practices and principles for private companies in Canada.