The Blooming Flower Co. has earnings of $1.87 per share. a. If the benchmark PE for the company is 15, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the benchmark PE for the company is 28, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price b. Stock price

The Blooming Flower Co. has earnings of $1.87 per share. a. If the benchmark PE for the company is 15, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the benchmark PE for the company is 28, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price b. Stock price

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

See similar textbooks

Similar questions

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.)
Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
The Dahlia Flower Company has earnings of $1.44 per share. If the benchmark PE for the company is 13, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. If the benchmark PE for the company is 16, how much will you pay for the stock?
The Beautiful Flower Company. has earnings of $1.44 per sharee. a. If the benchmark PE for the company is 13, how much will you pay for the stock? b. If the benchmark PE for the company is 16, how much will you pay for the stock?
Bitters Co.'s net income is $14,000, the market value of common stock is $160,000, and the book value of common stockholders' equity is $100,000. What is the Price to Book Ratio for Bitters Co.? (Round your answer to two decimal places, X.XX.) Group of answer choices 1.60 0.14 0.63 7.14
A company has an EPS of $2.85, a book value per share of $27.93, and a market/book ratio of 2.8x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Do not round intermediate calculations. Round your answers to two decimal places.
Bolton Corporation had additions to retained earnings for the year just ended of $248,000. The firm paid out $187,000 in cash dividends, and it has ending total equity of $4.92 million. The company currently has 150,000 shares of common stock outstanding. a. b. c. d. If the stock currently sells for $80 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) e. What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) f. If the company had sales of $4.74 million, what is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
If the common stock of Comdisco pays an annual dividend of $0.28, has a PE ratio of 11, and closed at 25, what are the current earnings per share? a. $7.00 b. $2.27 c. $3.08 d. $1.12
The Perfect Rose Co. has earnings of $2.10 per share. The benchmark PE for the company is 10. a. What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the benchmark PE were 13? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) stock price for pe of 10 stock price for pe of 13
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.85 per share, and there are 31,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. Assets Liabilities and Equity Cash $220,000 Equity $1,240,000 Fixed assets 1,020,000 a. What price is Payout stock selling for today? (Round your answer to 2 decimal places.) b. What price will it sell for tomorrow? (Round your answer to 2 decimal places.)
Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 520,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ? (Round your intermediate and final answers to two decimal places.)