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grigory [225]
3 years ago
6

Dean Brothers Inc. recently reported net income of $1,500,000. The company has 300,000 shares of common stock. The stock current

ly trades at $60 a share. The company continues to expand and anticipates that one year from now its net income will be $2,500,000. Over the next year the company also anticipates issuing an additional 100,000 shares of stock, so that one year from now the company will have 400,000 shares of common stock. Assuming the company's price/earnings ratio remains at its current level, what will be the company's stock price one year from now?
Business
1 answer:
vladimir1956 [14]3 years ago
7 0

Answer:

$75

Explanation:

The formula to compute the price -earning ratio is shown below:

Price earning ratio = Market price ÷ Earning per share

where,

Market price is $60

And the earning per share is

= ($1,500,000 ÷ 300,000 shares)

So, price earning ratio is 12

Now the company stock price is

$12 = Stock price ÷ (2,500,000 ÷ 400,000)

So, Stock price is $75

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Nikitich [7]

Answer:

A. population sizes, income levels and cultural influences, the current state of the infrastructure and distribution and retail networks available.

Explanation:

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These factors are the ecosystem of the country that gives insight of the market size and market growth of a particular market.

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3 years ago
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11Alexandr11 [23.1K]

Answer:

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3 0
3 years ago
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gladu [14]

Answer:

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How can a country gain from specialization and​ trade? A. A country can specialize in producing that for which it has an absolut
strojnjashka [21]

Answer:

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3 years ago
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Hey I think A production–possibility frontier or production possibility curve is a curve which shows various combinations of set of two goods which can be produced with the given resources and technology where the given resources are fully and efficiently utilised per unit time
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