PQR Co. has earnings of $2.66 per share. The benchmark PE for company is 19. What stock price (to two decimals) would you consider appropriate?
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A: Expected Market price = PE multiple * Earnings per share = 15 * 5.5 = 82.5
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A: a. Return on Stockholders' Equity - This ratio represents net income earned by the company from the…
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A: Return on Stockholders' Equity = Net income Average stockholders' equity × 100 Return on Common…
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A: The question is based on the concept of Financial Accounting
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A: Formula: Price - Earnings ratio = Share price / Earnings per share. Division of Share price with…
Q: What is its P/E ratio?
A: SOLUTION:- P/E Ratio = Market Value per share/ EPS (Earnings Per Share) Given EPS = $2.85…
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A: Formula used: Cost of goods sold = Opening stock + Purchases - Closing stock
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A: given A company has earnings per share net income of $950,000; its weighted-average common shares…
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A: P/E ratio is the times of share value to the earning of the share. P/E Ratio = Price Per Share /…
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A: In this question we require to compute the price/earnings ratio of company.
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A: Given Information End of Year share Prices of Year 2015,2016,2017,2018,2019 and 2020 are…
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A: The Dividend is the profit that is paid out to the shareholders by the firms out of the current…
Q: ommon Stockholders' Profitability Analysis A company reports the following: Net income $160,000…
A: The ratio is used to evaluate the firm's financial situation and helps management in making…
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Q: Gunter Company has income of $200,000, earnings per share of $2.00, common equity of $2,000,000, and…
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Q: A company has earnings of $3.18 per share. The benchmark PE for the company is 18. What stock price…
A: Given:Earnings = $3.18PE = 18
Q: The Blooming Flower Co. has earnings of $1.63 per share. a. If the benchmark PE for the company is…
A: In the given question we require to calculate the price of the stock using PE multiple approach.
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A: Earnings per share indicate the profit earned by the stockholders on each stock. It can be…
Q: If a company's stock is currently selling for $12 per share and its price earning ratio is 6, what…
A: The price-earnings ratio is the ratio which shows the price paid by the investor of each dollar of…
Q: A company has recently declared a dividend of 12 cents per share. The share price is $3.72 cum div…
A: A company has several sources from where it can raise funds. It can issue equity shares and the…
Q: The table that follows shows the stock price, earnings per share, and dividends per share for three…
A: Price earnings ratio is the amount the investor ready to invest to earn one dollar from the company.…
Q: Ultra Petroleum (UPL) has earnings per share of $1.57 and a P/E ratio of 32.96. What's the stock…
A: P/E ratio = Market price of stock / Earnings per share Market price of stock = P/E ratio *…
Q: Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.67 and a book value of equity…
A: 1.The share price is $25.07Computation of share price based on PE ratio:
Q: Calculate the missing information for the following stock. Show your work.
A: Information Provided: Annual dividend = $0.39 Current price per share = $26.50 Price-Earnings ratio…
Q: Common Stockholders' Profitability Analysis A company reports the following: Net income $275,000…
A: In order to determine the return on shareholders' equity the net income is required to be divided by…
Q: price of common shares is $30, what is the price-earnings ratio on common stock for Year 2? (Round…
A: Price earnings ratio = Market price per share/ Earnings per share
Q: Ultra Petroleum (UPL) has earnings per share of $1.67 and a P/E ratio of 33.16. What’s the stock…
A: P/E or price earnings multiple is one of the valuation techniques used. It is the price per share of…
Q: Oman Company has 1,500 shares of stock outstanding. The price-earnings ratio for 2018 is 21. If the…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: You are given the following information: Sales : OMR 100,000 Gross profit ratio : 15% Average stock…
A: Stock turnover ratio: Stock turnover is a ratio that measures the quantity of times inventory is…
Q: A company has an EPS of $3.30, a book value per share of $32.34, and a market/book ratio of 3.1x.…
A: EPS=3.30 Book value per share =32.34 Market book ratio = 3.1x
Q: A company reports earnings per share on common stock of $2.00 when the market price of per share of…
A: The price earning ratio, also known as P/E ratio or PER is the ratio of a company. Share price to…
Q: Ultra Petroleum (UPL) has earnings per share of $1.63 and a P/E ratio of 33.08. What’s the stock…
A: Earning per share = $1.63 P/E Ratio = 33.08
Q: A company reports earnings per share on common stock of $2.00 when the market price of per share of…
A: Price Earnings Ratio: It is an accounting ratio of a company that establish the relationship between…
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A: In this question we need to compute the price of stock using PE multiple approach.
Q: Compute Topp Company's price-earnings (PE) ratio if its common stock has a market value of $23.79…
A: Price Earning Ratio (P/E Ratio) The purpose of using the price earning ratio which provides the…
Q: Answer the questions based on the Data Table.
A: (1) Calculation of the EPS:EPS can be calculated by the following formula:EPS = (Net Income –…
Q: Roberts and Company’s market-to-book ratio is currently 6.5 times and PE ratio is 12.5 times. If…
A: Solution:- Calculation of book value per share and earnings per share as follows under:-
Q: A company expects EPS to be $1 next year. The industry average P/E ratio is 3 and Enterprise…
A: Enterprise multiple = EV/EBITDA
Q: On December 31, Sulfur Corporation has the following data available: Net Income $100,000 $5 Market…
A: Earnings per share = (net income - preferred dividend)/Weighted average no. of common shares…
Q: Calculate EPS after stock dividend is paid and what impact would the stock dividend have on Gordong…
A: Given that: Net Income = $45 million Number of Shares = 15,000,000 Stock dividend = 20%
Q: If a company’s stock is currently selling for $12 per share and its price earningsratio is 6, what…
A: Calculation of earnings per share: Answer: Earnings per share is $2
Q: What was its P/E ratio?
A: The price-to-earnings ratio (P/E ratio) is the ratio for measuring the relationship between the…
Q: Lei Materials' balance sheet lists total assets of $1.05 billion, $127 million in current…
A: Market to book ratio is calculated as market value of equity divided by book value of equity
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- Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)Reno Revolvere has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio?
- Selected information for Berry Company is as follows: Berrys return on equity rounded to the nearest percentage point is: a. 20%. c. 28%. b. 21%. d. 40%.The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Required: 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.
- Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yieldThe Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%, respectively. If the flotation cost is 10% of the issue’s gross proceeds, what is the cost of external equity, re?Albion Inc. provided the following information for its most recent year of operations. The tax rate is 40%. Required: 1. Compute the following: (a) return on sales, (b) return on assets, (c) return on stockholders equity, (d) earnings per share, (e) price-earnings ratio, (f) dividend yield, and (g) dividend payout ratio. 2. CONCEPTUAL CONNECTION If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain.
- A company reports the following: Determine (a) the return on stockholders equity and (b) the return on common stockholders equity. Round percentages to one decimal place.Stockholder Profitability Ratios The following information pertains to Montague Corporation Required: Calculate the return on common equity and the earnings per share. (Note: Round answers to two decimal places.)Financial leverage Costco Wholesale Corporation (COST) and Wel-Mart Stroes Inc. (WMT)reported the following data (in milllions) for a recent year: Compute the return on stockholders equity. Round to one decimal place.
