Vriend Software Inc.'s book value per share is $13.70. Earnings per share is $1.81, and the firm's stock trades in the stock market at 2.5 times book value per share. What will the P/E ratio be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) P/E ratio times

Vriend Software Inc.'s book value per share is $13.70. Earnings per share is $1.81, and the firm's stock trades in the stock market at 2.5 times book value per share. What will the P/E ratio be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) P/E ratio times

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

See similar textbooks

Related questions

Q: Carla Vista Corporation incurred the following costs while manufacturing its product: Materials used…

A: The term "cost of goods produced" (COGM) in managerial accounting refers to a schedule or statement…

Q: a) Below are selected ratios for three companies which operate in three different industries:…

A: Discount Retail store are the stores wherein the goods are sold for final consumption to ultimate…

Q: ar-old son of Andrew and Diana Wilson. Elliot starred in several television commercials this year…

A: Deduction - An item that can be deducted from taxable income to lower the balance due is known as a…

Q: Cost of Goods Sold In September, Lauren Ashley Company purchased materials costing $250,000 and…

A: Lets understand the basics. Cost of goods sold is a cost incurred to make a product or services…

Q: Requirement 2. Post the transactions to the T-accounts, using transaction dates as posting…

A: T Account :— It is the journal ledger account in which journal entries are posted. General Rule…

Q: a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b.…

A: It has been given in the question that selling price per unit is the $35 A fixed cost does not vary…

Q: On June 30, 2017, Oriole Corp. issued 10% bonds with a face value of $800,000 due in 20 years. They…

A: The amortizable bond premium is a tax term that refers to the excess price paid for a bond over and…

Q: In 20X1, LLHC sold for $2,400 per ton, making it one of the most profitable products. A similar…

A: Introduction Bonds or loans that will be collateralized through a CDO transaction are accumulated…

Q: 10/15 Sold 1,000 shares @ P130 net of transaction cost CR – 21 130,000 12/04/15 Sold 1,000 shares @…

A: Dividend Income - Dividends are sums of money given to you by a corporation in exchange for your…

Q: Salaries expenses Marketing Expenses A/R A/P Total Sales Cost of goods sold Cash Retained earnings…

A: Lets understand the basics. Financial statement is divided into two major sections. (1) Income…

Q: Description Willie Nelson, Jr., controller for Jenkins Corporation, is preparing the company's…

A: Disclaimer : Since you have asked multiple sub-part questions, we will solve the first three…

Q: ssume a patient has a particular disease. The quality weight (q) assoc 0.6, meaning the patient has…

A: Discounting - The process of discounting involves figuring out the present value of a payment or…

Q: 3. Prepare a journal entry in the space below to record a January 2, 2023, purchase of equipment for…

A: Purchase of equipment by signing a long term note doesn't involve any Cash outflow.

Q: On January 1, 2025, Sheridan Company makes the two following acquisitions. 1. 2. Purchases land…

A: Time Value of Money :— According to this concept, value of money in present day is greater than the…

Q: Gibson Manufacturing produces two keyboards, one for laptop computers and the other for desktop…

A: Product cost refers to the cost of producing a good in the factory, thus direct materials, direct…

Q: 3. Find the discount interest on Php 20,000 for 210 days at a discount interest rate of 8 %%. What…

A: Present value: The value calculated at the present date of a future cash flow is termed as present…

Q: Prepare a bank reconciliation for Kali Loli from the following checkbook records and bank statement…

Q: Prepare a ten-column work sheet for my business chills and fruit for the year ending on Dec. 31,…

A: Trial balance is the list of accounts with the ending balance at the end of the accounting period.…

Q: F.J. Haydn Company Balance Sheets Years ending December 31 (thousands of dollars) Cash Accounts…

A: Cash Flow Statement: By monitoring an organization's cash flow, a cash flow statement is a crucial…

Q: The following amounts were reported by the two companies: Raiden Inc. Nash Company Net Income Total…

A: Working : Formula for Net profit margin (%) = (Net Income / Total revenue) x 100

Q: Determine the Direct Materials (DM) Price Variance and DM Efficiency Variance for the camping kits…

A: Direct material Price variance is the difference between standard material costs resulting from…

Q: Question 5 of 7 Prepare a balance sheet at March 31, 2024. SHERIDAN Balance Sheet Cash Accounts…

A: Revenue- Camping fees $164000 Add: revenue general stores $40000 Total Revenue.…

Q: Jon's Tractor Repair has gross property, plant and equipment totaling $2.3 million. The company has…

A: Accumulated Depreciation at the end of specific period :— It is the sum of depreciation expense of…

Q: [ ($27,200). During At the beginning of 2021, Mr. Adam Barker had a 2016 net capital loss carry…

A: Introduction The amount that remains with an enterprise after all expenditures have been paid is…

Q: Evaluating data reliability is a critical part of the audit process. Explain the differences among…

A: Answer:- Audit:- Audit is the systematic examination of the financial statements of the company.…

Q: Manish opened a cafe with an initial investment of PhP 64000. In the first year he incurred the loss…

A: Net Profit :— It is the difference between total revenue and total expenses. Return on investment…

Q: In a joint processing operation, Nolen Company manufactures three grades of sugar from common input,…

A: Incremental profit or loss is the amount of profit or loss which is earned or incurred by the entity…

Q: the interest deduction on an income tax return plus the required down payment using a 1st 2nd and…

A: Deduction - A deduction is a cost that can be taken out of your taxable income to lower your tax…

Q: P acquired 70% of S in 20X8. The statements of profit or loss of the two companies for the year…

A: Consolidated Financial Statements: Consolidation statements are the financial statements prepared by…

Q: Units of production data for the two departments of Atlantic Cable and Wire Company for July of the…

A: a. Drawing Department: Whole Units Units to be accounted for: Work in process, July 1 500…

Q: Wilmington Company has two manufacturing departments-Assembly and Fabrication. It considers all of…

A: PREDETERMINED OVERHEAD RATE Predetermined rate means an indirect cost rate. predetermined overhead…

Q: Exercise 2-53 (Algorithmic) Transaction Analysis and Journal Entries Pasta House Inc. was organized…

A: Journal Entry: A journal is a book in which all of a company's transactions are…

Q: Weaver Corporation had the following stock issued and outstanding at January 1, Year 2:…

A: Dividend - Dividend is part of profit of the company paid to the shareholders. Company paid dividend…

Q: Griffin Service Company, Incorporated, was organized by Bennett Griffin and five other investors…

A: Working : Transaction (b) , (d) & (f) will not have journal entry . As transaction (b) & (d)…

Q: Arizona Desert Homes (ADH) constructed a new subdivision during 2023 and 2024 under contract with…

A: In the books of Arizona Desert Homes (ADH) Journal entry in 2024 to record revenue Date Account…

Q: COSO's 2013 Internal Control - Integrated Framework does NOT include the following as one of the key…

A: Internal control is defined as a procedure that requires a company to provide true results through…

Q: Concord Corporation was organized on January 1, 2022. It is authorized to issue 14,000 shares of 8%,…

A: The shares issued at the price higher than the par value are said to be issued at premium. The…

Q: On January 2, 2018, Hank Brady establish the Judge Hank Brady Irrevocable Dynas Trust with…

A: Shares - Equity ownership in a corporation is represented by shares. Shares are a type of financial…

Q: On December 16, 2018, Mr. Anjo Marquez applied for a Php 750,000 loan. After deducing the interest…

A: Time Value of Money :— According to this concept, value of money in present day is greater than the…

Q: Sales Cost of goods sold. Accounts receivable 2021 $ 424,322 214,661 20,580 Numerator: 2020 $…

A: Working : (1) Trend percent for net sales = Current year net sales / Base year net sales (2) Trend…

Q: What are the main reasons for an audit, and what actions result in an audit being conducted?

A: 1. Compliance with laws and regulations: Audits are conducted in order to ensure that an…

Q: At year end 2015, Yung.com had notes payable of $1200, accounts payable of $3400, and long-term debt…

A: Income Statement: It is a part of financial statement of a company in which revenue and expenses are…

Q: Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with…

A: Defined Pension Plan - A defined-benefit plan is an employer-sponsored retirement program where…

Q: January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as its…

A: Answer to Question:-1 Particulars 2024 2025 1.Interest Capitalised $ 1,60,925 $ 2,25,251…

Q: a. Compute the controllable variance. b. Compute the volume variance

A: Variance is the difference between the estimated or budgeted cost of production and the actual cost…

Q: During the first week in November, Erin Mills worked 45.50 hours and produced 1,289 units under a…

A: The profits of an organisation are its earnings. They are obtained by deducting operational…

Q: Oliver Co. sells themed beauty product gift boxes for $30 per box. The box and items in it cost…

A: Margin of safety is the revenue earned by a company by paying it's all fixed expenses and variable…

Q: he cost of the raw materials destroyed by the fire was ___________

A: Cost of goods sold is actual cost of goods being sold to the customers. Cost of goods manufactured…

Q: Part 2: Assume that Fabfit Enterprises collected $1,990,000 during 2023 for fitness magazines that…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Swift Company was organized on March 1 of the current year. After five months of startup losses,…

A: SWIFT COMPANY Schedule of Cost of goods manufactured For the month ended August 31 Direct…

Question

Vriend Software Inc.'s book value per share is $13.70. Eamings per share is $1.81, and the firm's stock trades in the stock market at
2.5 times book value per share. What will the P/E ratio be? (Do not round Intermediate calculations. Round your final answer to 2
decimal places.)
P/E ratio
times

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Explanation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

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.)
For a recent year, OfficeMax and Staples are two companies competing in the retail office supply business. OfficeMax had a net income of 34,894,000, while Staples had a net loss of 210,706,000. OfficeMax had preferred stock of 28,726,000 with preferred dividends of 2,123,000. Staples had no preferred stock. The average outstanding common shares for each company were as follows: a. Determine the earnings per share for each company. Round to the nearest cent. b. Evaluate the relative profitability of the two companies.
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.
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?
National Co. has an ROE of 15 percent, a debt ratio of 40 percent, and a profit margin of 6 percent. The company’s total assets equal P800 million. What are the company’s sales? (Assume that the company has no preferred stock.)(Hint: ROA & ROE are based on the ending balances)
A company expects EPS to be $2.52 next year. The industry average P/E ratio is 23.99 and Enterprise multiple is 7.57. The EBITDA for the company is $22.97 million. What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.
Mayo Inc.'s perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual dividend. What is the company's cost of preferred stock for use in calculating the WACC? Show work in excel and explain answer
In December 2022, Samar Co. had a share price of AED 50. They had 12 million shares outstanding, a market-to-book ratio of 3. In addition, Samar had AED 200 million debt, AED 40 million in net income and AED 850 million in sales. Calculate P/E ratio and ROE according to Du Pont system.
Baxter International has an EPS of $2.50, a book value per share of $21.84, and a market/book ratio of 2.3X. What is its P/E ratio? Your answer should be between 16.26 and 30.48, rounded to 2 decimal places, with no special characters.
MF Corporation has an ROE of 16% and a plowback ratio of 40%. The market capitalization rate is 13%. Required: If the coming year’s earnings are expected to be $1.90 per share, at what price will the stock sell? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. What price do you expect MF shares to sell for in three years? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
The following information is collected from the current annual report of XYZ Ltd: Earning of firm Rs. 9, 00,000 Number of equity shares 1, 50,000 Return on Equity 22.5% Cost of equity 15%What should be the dividend payout ratio so as to keep the share price at Rs. 48 byusing Walter Model? Also, determine the optimum dividend payout ratio and themarket price of share at the optimum dividend payout ratio. What will themaximum and minimum share price under this model?