1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kisachek [45]
3 years ago
14

Perine, Inc., has balance sheet equity of $6 million. At the same time, the income statement shows net income of $906,000. The c

ompany paid dividends of $480,180 and has 200,000 shares of stock outstanding. If the benchmark PE ratio is 24, what is the target stock price in one year? Assume the firm will grow at the sustainable growth rate. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Oksanka [162]3 years ago
5 0

Answer:

The target stock price in year 1 is $51.12

Explanation:

Given SE = $6 MIL, NI= $906 000, Div= $408180, Shares= 200000, PE ratio= 24 , SP =?

W e will use the price earning ratio as we are are given the benchmark PE ratio and this ratio measures the stock price relative to it profits

PE = Stock price / Earnings per share

Need to calculate Earnings per share

EPS = net Income - dividends/ oustanding Shares

       =906000-480180/200000

         =$2.1291/$2.13

Sustitute in the formula for PE ratio

24 = Stock Price/2.13

Stock Price = $51.12

Therefore the target stock price in year 1 is $51.12

You might be interested in
1) Explain in brief the creations of controlled environment for off season vegetable farming.
Orlov [11]

Answer:

1.the off season vegetable production can be obtained by different ways such as taking use of and utilise various agro climatic condition improve writing choosen adjustment of planting time making plastic tunnels polythene house and permanent glass house to provide control environmental conditions.

2the of seasonal vegetable are those vegetable which can be grown in rainy season using technology The main advantage of off season vegetable is that ensure food security for example tomato can be grown every time using a tunnel of greenhouse technology are genetically modified seed.

3 0
3 years ago
Classify each of the following as structural, organizational, or activity cost drivers.
pshichka [43]

Answer:

Organizational

Explanation:

An organizational structure in one in which certain activities are aligned to achieve the ultimate goal of the organization. Here also Apple Inc. has arranged all similar types of set of machines together to get particular output product. The cost drivers in organizational composition can influence the output of a company.

8 0
3 years ago
20 points
Luden [163]
The best answer is B)court clerk. 

The court clerk is responsible for several administrative duties, such as those described above, and also taking oaths of all relevant parties in a court case. 

7 0
3 years ago
When asked why she participated with other students in a protest against treatment of women on her campus, Kai says that all hum
stira [4]

Answer:

The correct answer is A. postconventional.

Explanation:

This level of moral development consists of an approach from a perspective superior to society. The person who reaches this level sees beyond the norms of his own community, reaching the principles on which any good society is based. Very few adults manage to have a postconventional trial.

Those individuals who reach the postconventional level have their own ethical principles, which include basic human rights such as life, freedom and justice; they see the rules as useful but modifiable mechanisms, instead of absolute norms that must be obeyed without questioning.

Because individuals with a postconventional reasoning overlap their own moral evaluation of situations about social conventions, their behavior, especially in stage six, can sometimes be confused with that of those who are in the preconventional stage.

7 0
3 years ago
Bess wrote four checks last month, and these were the only transactions for her checking account. According to her check registe
Rzqust [24]
It looks tricky but its actually simple. Bank statement shows balance is $1054.13 while Bess check register shows $869.96. For us to know the amount of the check that was not approved is to get the difference of the bank statement and Bess check register. $1054.13 minus 869.96 is $184.17. Therefore, the answer is letter B.
5 0
4 years ago
Other questions:
  • Which of the following statements is CORRECT?a. The discounted payback method eliminates all of the problems associated with the
    5·1 answer
  • Jami is managing an extended advertising campaign for a local convenience store chain. The campaign includes a series of televis
    5·1 answer
  • A grocery store is trying to find a new vendor for carrots. Its three criteria are 1. Freshness, 2. Lot Size, and 3. Cost with f
    14·1 answer
  • Jayda started a corporation that creates software products for clients. Which statement correctly reflects Jayda’s role in the c
    7·1 answer
  • Jana completed an informational interview with a preschool teacher in her area. She wants to write a thank-you letter. What shou
    15·1 answer
  • Production and sales estimates for June are as follows:
    10·1 answer
  • A Metro City ordinance imposes a jail term, without a trial, on all vendors who operate in certain areas. A court would likely r
    8·1 answer
  • The Salty Pawz margins are good, but would Wanda be better off by lowering prices and potentially selling more? Would dropping h
    5·1 answer
  • A rights offer made to existing shareholders with the sole purpose of making it more difficult for another firm to acquire the c
    10·1 answer
  • How does a weak currency give a country an unfair advantage in trade?.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!