Exhibit 12.5 Use the Information Below for the Following Problem(S)

Multiple Choice

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.

A) 57.5
B) 37.5
C) 45
D) 32.75
E) 75