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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

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An Aquatic plant also is like other plants which produce photosynthesis. So it releases Oxygen to the environment

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3 years ago
When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is
Paha777 [63]

Answer:

A) following an expansionary monetary policy.

Explanation:

Central Bank through the Federal Reserve can influence money supply in the economy. If it causes the money supply to increase while keeping the aggregate demand constant, it is following an expansionary monetary policy. This can occur in various ways like through decreasing interest rates, buying bonds in the open market operations; known as quantitative easing, or by lowering the reserve requirement ratio for banks and other financial institutions.

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3 years ago
A _____________ is a matrix or two-dimensional barcode first designed for the automotive industry in japan.?
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5 0
3 years ago
If firms and households form their expectations about inflation by looking at past inflation, this form of expectations formatio
eduard

Answer:

B) adaptive

Explanation:

Based on the scenario being described it can be said that this form of expectations formation is known as adaptive expectations. These are expectations formed from a process in which individuals predict what will most likely occur in the future based on the data of what has already happened in the past.

6 0
3 years ago
Darlene is getting an FHA-insured loan to purchase a house. The purchase price is $278,000, and she’s paying 3.5% down. She will
omeli [17]

Answer:

96.5%

Explanation:

Data provided in the question:

Purchase price i.e the value = $278,000

Down payment paid = 3.5%

Upfront mortgage insurance premium = $4,865

Now,

Amount of down payment = 3.5% of loan value

= 0.035 × $278,000

= $9,730

Therefore,

The loan value = value - Amount of down payment

= $278,000 -  $9,730

= $268,270

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= [ $268,270 ÷ $278,000 ] × 100%

= 96.5%

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3 years ago
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