16) RAH Inc. is not publicly traded, but the P/E ratios of it’s 4 closest competitors are 15, 15.3, 15.7, and 16.5. RAH’s current earnings per share are $1.50. What is a reasonable price for a share of RAH trendy boutique ? Using a P/E ratio of 13.46, what is a reasonable value for a share of Walmart stock. 13) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the company pays $2.50 annual dividends, what is the expected rate of return on its stock? Class C stock (GOOG) has no voting rights, and is largely held by employees and some common shareholders. All I own right now is a Google ( GOOG ) position and bought some QID this morning to protect in going into tomorrow. Royale Energy Inc. (ROYL) will now have resistance located at $5.65. That would have you think that penny stocks are something to be feared and avoided. As a rule of thumb, try to buy stocks that are breaking out of the first or second base of their run. If FAS can break above the high of the day ( $9.23 ) is will run even further. That is the nature of small caps and stocks with above average momentum.
Advanced Micro Devices Inc. (AMD) – Shares of Advanced Micro Devices Inc. broke above $7.90 on Thursday. FAS pulled back with the stock market on Thursday. It has not paid the preferred dividend for the last 3 years, but intends to pay a dividend on the common stock in the coming year. The preferred stock pays a dividend of 5.75%. Investors require a rate of return of 6.50% today on this stock. 15) The required rate of return on TKF preferred has fallen from 5.75% at the time of issue to the present rate of 5%. The stock now sells for $115. This “growth at a reasonable price” thesis is one of the key reasons I like Open Text right now. Preferred stock, like common stock, usually has no maturity; i.e., the corporation does not pay back the investment. The market value of preferred stock, like bonds, will usually fluctuate in value primarily as the result of market rates of interest. As you buy a stock, you become the owner of that company.