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crimeas [40]
4 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]4 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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Explanation:

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Larry would therefore be correct in saying that to prove Stew-topia engaged in predatory pricing, it would need to proven that Stewtopia priced stew below average variable cost with the specific intention of driving 2 Live Stew out of business.

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The constraints of economic growth in south africa
Genrish500 [490]
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4 years ago
Two important group outcomes or consequences of the interactive
Alik [6]

Answer:

task performance and group maintenance.

Explanation:

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This ultimately implies that, beyond an individual possessing the traits or qualities of a leader, leadership in itself is a process that revolves around the activities or happenings between the leader and those who he or she is leading, which are the followers. Thus, leadership is simply a continuous process and it's transactional in nature because it occurs between a leader and the followers.

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3 years ago
Antoine recently received an email from a fraudulent organization that sought his personal financial account information. Recogn
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Answer:

The answer is: Phishing

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3 0
3 years ago
abares Corporation had these transactions during 2020. Indicate whether each transaction is an operating activity, investing act
scZoUnD [109]

Answer:

(a) Issued $50,000 par value common stock for cash = Financing Activities

b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity

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The Cash flows related to raising of capital is known as Cash flow from Financing Activities.

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The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.

7 0
3 years ago
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