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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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State the following statement is True or False, and explain why. Thor who lives in Montana purchased a car produced in Japan for
Likurg_2 [28]

Answer:

false

His purchase left GDP unchanged

Consumption of non durables would increase.

Also, net export would decrease.

these effects would cancel out

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

3 0
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Money used to finance business activities is known as
nadya68 [22]
In the cash flow statement financing activities refer to the flow of cash between a business and its owners and creditors.
4 0
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You have purchased a put option on Pfizer common stock. The option has an exercise price of $53 and Pfizer’s stock currently tra
12345 [234]

Answer:

A. -0.80

B. 2.20

Explanation:

A. Calculation for your net profit on the option if Pfizer’s stock price does not change over the life of the option

Net profit per share=max(53-55,0)-0.80

Net profit per share=0-0.80

Net profit per share=-0.80

Therefore your net profit on the option if Pfizer’s stock price does not change over the life of the option is -0.80

b. Calculation for your net profit on the option if Pfizer’s stock price falls to $50 and you exercise the option

Net profit per share

=max(53-50,0)-0.80

Net profit per share=3-0.80

Net profit per share=2.20

Therefore your net profit on the option if Pfizer’s stock price falls to $50 and you exercise the option is 2.20

3 0
3 years ago
Companies should avoid answering complaints on product review sites, because they may appear incompetent.
blondinia [14]
False answering customer feedback can make the business seem more honest and appealing to consumers.
6 0
3 years ago
An outward shift of a nation's production possibilities frontier can occur due to
DENIUS [597]

Answer:

The correct answer is option D.

Explanation:

Production possibility frontier shows the different amounts of two goods that can be produced using fixed resources.

An outward shift in the production possibility frontier imply that production of output is increasing.

Production may increase because of increase in inputs.

Here, the shift in production is happening because of increase in labor force.

8 0
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