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
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.

You might be interested in
Washington has an extensive collection of baseball cards. He wants to know how much his mint condition, rookie-year Hank Aaron c
Anit [1.1K]

<u>Explanation:</u>

It is recommended by some to determine a card's current market value of by determining whether the card has been professionally graded by the Professional Sports Authenticator, if yes, then one can check up the value on the Sports Market Report (SMR).

However, the Hank Aaron card is Estimated to have a PSA 9 Mint Value of $17,500.

7 0
3 years ago
If businesses are producing at capacity, and the nation is experiencing almost full employment (a very low rate of unemployment
Ivanshal [37]

Answer:

The correct answer to the following question is D) interest rates would be increased  by the government when there is almost full employment in the economy.

Explanation:

When in the economy, business are producing close to productivity and in the nation there is almost full employment , then it can be said that the economy is booming . Which means there is good amount of money supply in the economy and people are spending robustly and that means the demand is high , which ultimately tells that the prices of goods and services are high.

So to cut the prices, government will increase the interest rate which will lead to the increase in cost of borrowing, and that will cause decrease in money supply and demand will ultimately fall, which leads to decrease in prices of goods and services.

3 0
3 years ago
Using the constant growth model, Camp Company's expected dividend yield ( D1) is 4% of the stock price, and its growth rate is 6
s2008m [1.1K]

Answer:

Ks = 4%+6% = 10%

Explanation:

so we need  to remember that tax rate doesn't affect Cost of equity

in this case the formula will be:

cost of equity is equal to=dividend yield+Growth rate  or Ks = D1/P + g

Camp Company's expected dividend yield ( D1) is 4%

growth rate is 6%

SO we get Ks = 4%+6% = 10%

5 0
3 years ago
Which of these measures is (are) frequently used to rate suppliers when using an integrated supplier scorecard?
nignag [31]
When evaluating a supplier using the integrated supplier scorecard, most are reevaluated on quality of their products, cost of the product, how quickly the items are able to be deviled and the flexibility the supplier has when the organization needs supplies. The scorecards allow the company to make sure they are doing and receiving the best items from their suppliers on each different level. 
4 0
2 years ago
Pierce Bailey, a sales executive at a mobile service company, needs to document details of the sales calls he makes on a daily b
olga55 [171]

Answer: Explicit knowledge.

Explanation: Pierce Bailey takes record of clear and fully detailed information for his company, for the company to have an explicit knowledge of all calls he makes.

An explicit knowledge of an information means that the information is clear with nothing hidden.

5 0
3 years ago
Other questions:
  • Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the
    8·1 answer
  • A client reports drinking one to two drinks when drinking behavior first began. Now the client reports drinking at least six dri
    9·1 answer
  • Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs ar
    12·1 answer
  • Becky fenton has 80/160/90 automobile insurance coverage. if two other people are awarded $125,000 each for injuries in an auto
    8·1 answer
  • If the cost of housing increases by 10 percent, then, other things the same, the CPI is likely to increase by about:(A) 10 perce
    8·1 answer
  • 1. Describe the effect each action below will have on the money supply. Explain your reasoning.
    14·1 answer
  • Growth of specialization in the kinds of jobs people hold __________. has slowed dramatically since the 1970s, along with the de
    15·1 answer
  • John, 25, just started contributing to his employer's 401(k) plan and started an ira account. he is choosing to invest only in b
    9·1 answer
  • Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apar
    14·1 answer
  • The unemployment rate in a town in which 65,400 persons are in the labor force and 11,000 are unemployed equals:_____.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!