Flex Company just paid total dividends of $825,000 and reported additions to retained earnings of $2,475,000. The company has 615,000 shares of stock outstanding and a benchmark PE of 16.3 times. What stock price would you consider appropriate? Multiple Choice $87.46 $65.60 $83.09 O $21.87

Flex Company just paid total dividends of $825,000 and reported additions to retained earnings of $2,475,000. The company has 615,000 shares of stock outstanding and a benchmark PE of 16.3 times. What stock price would you consider appropriate? Multiple Choice $87.46 $65.60 $83.09 O $21.87

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 38MCQ

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Concept explainers

Operating Cash Flows

A cash flow statement (CFS) helps the company to know the amount of cash at its disposal, the activities that lead to earning cash, and the activities which require cash expenditure for a particular period. The statement represents the liquidity of the company.

Question

04
es
Flex Company just paid total dividends of $825,000 and reported additions to retained earnings of $2,475,000. The company
has 615,000 shares of stock outstanding and a benchmark PE of 16.3 times. What stock price would you consider appropriate?
Multiple Choice
$87.46
$65.60
$83.09
$21.87
€ 70 79

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