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crimeas [40]
3 years ago
6

Flex Co. just paid total dividends of $1,100,000 and reported additions to retained earnings of $3,300,000. The company has 725,

000 shares of stock outstanding and a benchmark PE of 17.4 times. What stock price would you consider appropriate
Business
1 answer:
Ainat [17]3 years ago
3 0

Answer:

$105.60

Explanation:

Given: Total dividend paid= $1100000.

           Retained earning= $3300000.

           Number of outstanding shares= 725000.

           PE ratio= 17.4 times.

First finding earning per share.

Formula; EPS= \frac{(paid\ dividend+ additional\ retained\ earning)}{number\ of\ outstanding\ shares}

⇒ EPS= \frac{(1100000+3300000)}{725000}

⇒ EPS= \frac{4400000}{725000}

∴ EPS= \$ 6.0689 \approx \$ 6.07

Hence, earning per share (EPS)= $6.07.

Now, finding the appropriate stock price.

Price of stock= EPS\times PE

⇒ Price of stock= \$ 6.07\times 17.4

∴ Price of stock= \$ 105.60

Hence, $105.60 would be the appropriate price of stock.

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Answer:

Sue will have more money than Neal as long as they retire at the same time

Explanation:

Both Neal and Sue invest the same amount ($5,000) at same interest rate (7%). In the compound interest rate formula only the time is differ. When they retire at age 60, Sue has 5 years more than Neal meaning Sue earn more interest than Neal.

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3 years ago
What is the most important factor to you in choosing a job?
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Explanation:

1. Salary: Yes it is the salary which comes top most. Everybody needs money and each and everyone expects different salary based on their skills.

2. Career prospects: Career prospects are higher important than the salary. Only if the organization can provide space for growth, then only the job seems to be good.

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3 years ago
Gross Domestic Product (GDP) includes _____ goods and services.
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3 years ago
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Marriott Rewards customers earn points whenever they stay at any Marriott property. Louis is in this program, and he travels qui
MrRissso [65]

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Explanation: In simple words,  relationship marketing refers to the strategy under which an organisation tries several practices to foster positive relationship with the customers. These activities are designed to keep hearty relationships which will ultimately lead to strong and stable customer base.

In the given case, Marriott is rewarding their regular customers by providing them with special services and attention. Thus, we can conclude that the given case depicts relationship marketing.

5 0
3 years ago
Matthew bought 4 new compact discs at $16.99 each and a carrying case for $35.89. He paid % sales tax on his purchases. If Matth
Elodia [21]

Answer:

Yes, he paid the correct amount

Total Expected Payment = 103.85 + 8.57 = $112.42

Explanation:

Matthew bought 4 new compact discs at $16.99 each and a carrying case for $35.89. He paid 8 1/4% sales tax on his purchases. If Matthew paid $112.42 total, determine if he paid the correct amount.

Total Purchase cost is ($16.99 x 4) + $35.89 = $103.85

8.25% of  $103.85 = $8.57

Total Expected Payment = 103.85 + 8.57 = $112.42

6 0
3 years ago
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