All categories

2 years ago

Sankey co. has earnings per share of $4. 25. the benchmark pe is 19. 4 times. What stock price would you consider appropriate?

Business

1 answer:

Rashid [163]2 years ago

6 0

An appropriate stock price will be $82.45 ($4.25 * 19.4).

The most common manner to price stock is to compute the organization's rate-to-income (P/E) ratio. The P/E ratio equals the enterprise's stock rate divided via its maximum lately suggested income in line with proportion (EPS). A low P/E ratio means that an investor buying the inventory is receiving an appealing amount of value.

The time period inventory fee refers to the current rate that a proportion of inventory is bought and sold for available on the market. Every publicly-traded company, when its shares are issued, is given a fee – a challenge in their value that ideally reflects the price of the corporation itself.

An inventory is a general term used to explain the ownership certificates of any organization. A proportion, on the other hand, refers to the inventory certificate of a selected organization. Protecting a specific employer's percentage makes you a shareholder.

Learn more about the organization here brainly.com/question/1288780

#SPJ4

You might be interested in

Why shouldn’t applicants to job openings send their cover letter as an attachment in an e-mail? when would it be acceptable to s

Margarita [4]

The employer may restrict emails that contain attachments. This can be a function of their email spam or junk mail filtering system.

What is a cover letter in an email?

An email cover letter is a quick email that includes some personal information and the justification for delivering your resume.

Unless an employer specifically requests that you include them in the email body, send your cover letter and resume as separate attachments. Create a sincere cover letter every time, and attach it to the email.

Hence, the significance of the e-mail is aforementioned.

Learn more about on e-mail, here:

brainly.com/question/15710969

#SPJ1

6 0

2 years ago

Under the constant growth version of the dividend valuation model, the value of a stock is a function of which of the following?

Radda [10]

Answer:

a. The most recent dividend, the expected dividend growth rate, and the required rate of return on the stock.

Explanation:

Under the constant growth version, in dividend valuation method we have

$P_0 = \frac{D_0 + g}{K_e - g}$

Where,

P $_0$ = Current price of share

D $_0$ = Current recent most dividend

g = Growth rate

K $_e$ = Cost of equity or the required rate of return on the stock.

In this method capital gains are not considered at all.

But all the above listed factors are considered.

Therefore, correct option is,

a. The most recent dividend, the expected dividend growth rate, and the required rate of return on the stock.

7 0

4 years ago

The following is the adjusted trial balance for Baker Services. Accounts Debit Credit Cash $34,000 Accounts Receivable 28,000 Pr

marta [7]

Answer:

Ending RE 153,000

Explanation:

Retained Earning will be calcualte as follows:

$$$Beginning Retained Earnings$$$+/- Net Income/Loss$$$- Dividends$$$Equals Ending Retained Earning$

We need to solve for the net incoem in order to solve for ending Retained Rearnings (RE)

Net Income: Revenues - Expenses

Service Revenue 280,000

Salaries Expense (62,000)

Depreciation Expense (5,900)

Supplies Expense (14,000)

Insurance Expense (14,600)

Utilities Expense <u> (20,000) </u>

Net Income 163,500

Retained Earnings 11,500

Net Income 163,500

Dividends (22,000)

Ending RE 153,000

7 0

4 years ago

According to the simple monetary model, if money is growing at 5% in the United States and 6% in the United Kingdom, while real

Murrr4er [49]

Answer:

Since the money supply is growing at a much faster rate than real GDP in the US, this means that the inflation rate in the US will be higher than the inflation rate in the UK. In both countries the money supply is growing at a faster rate, but the difference in the US is larger (money supply is growing 67% faster that real GDP), while the money supply in the UK is growing 20% faster than real GDP.

This means that the US dollar should depreciate against the British pound.

If you have US dollars, then you should increase your investments in the UK because the pound will be worth more US dollars in the future.

More American goods should be exported to the UK, and less British goods should be imported to the US. Since the US dollar should be cheaper, American products are cheaper. The opposite will happen to British products.

7 0

3 years ago

The Allen, Bevell, and Carter partnership began the process of liquidation with the following balance sheet: Cash $ 25,000 Liabi

sleet_krkn [62]

The amount of the loss from the sale of non-cash assets that would have been allocated to Bevell is $45,000.

Data and Calculations:

Allen, Bevell, and Carter Partnership Balance Sheet

Cash $ 25,000 Liabilities $ 175,000

Noncash assets 500,000 Allen, capital 90,000

Bevell, capital 100,000

Carter, capital 160,000

Total $ 525,000 Total $ 525,000

Profit and Loss sharing ratio = 3:2:5

Proceeds from sale of assets = $275,000

Loss from sale of non-cash assets = $225,000 ($500,000 - $275,000)

Thus, the amount of the loss from the sale of non-cash assets that would have been allocated to Bevell is $45,000 ($225,000 x 2/10).

Learn more: brainly.com/question/17149203

7 0

2 years ago