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boyakko [2]
2 years ago
11

Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $95,000,000, and a current stock price

of $14.75 per share. The company is forecasting an increase of 25% for its after-tax income next year, but it also expects it will have to issue 2,800,000 new shares of stock (raising its shares outstanding from 5,500,000 to 8,300,000). If Cold Goose’s forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does the company’s management expect its stock price to be one year from now? (Note: Round intermediate calculations to four decimal places. Round the expected stock price to two decimal places.)
Business
1 answer:
aivan3 [116]2 years ago
6 0

Answer:

$12.22 per share

Explanation:

The computation of the stock price one year from now is shown below;

Current EPS = Net Income ÷ Number of shares

= $95,000,000/5,500,000

= $17.2727

Now  

P/E Ratio = Market Price per share ÷ Earnings per share

= $14.75 ÷ 17.2727

= 0.8539 times

Now

Revised EPS = $95,000,000 × 1.25 ÷ 8,300,000

= $14.3072  

So, the Price is

= 14.3072 × 0.8539

= $12.22 per share

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Anoveoswer:

The government deficit is $150 billion

Explanation:

Current Account (CA)  = Savings(S) -Investment(I).

Current account (CA)  is also conventionally defined as (X-M) (value of exports – value of imports) + Net income from abroad. (R)

CA = (X-M) + (R)

In this case CA= $1050 billion - $1100 billion

                      CA= -$50 billion

Therefore CA = (X-M) + (R)

           - $50 billion = x + $100 billion

       X-M= -$100 billion + -$50 billion=  -$150 billion

8 0
3 years ago
Karen and Al obtained a 30-year fixed-rate, fully amortized loan when they purchased their home. Which statement is true
murzikaleks [220]

Based on the information given regarding the mortgage, the true statement will be that each of their payments is for the same amount.

A fully amortized payment simply means a payment where the individual makes every payment according to the schedule of the loan.

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5 0
2 years ago
Kelly has a meeting with mark. when she arrives, mark is on the phone. mark tells the caller that his meeting appointment has ar
777dan777 [17]
Mark's action on the given scenario above is that he is showing courtesy. Courtesy is a way of showing politeness towards other people. This is shown where Mark ended the call because Kelly already arrives. He prioritizes Kelly first because he does not want to make her wait and she's already there to see him. 
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3 years ago
When would you use a cashier's check ?
AleksAgata [21]
Is this an open ended question ? Or multiple choice ?
6 0
3 years ago
The following information is available for Patrick Products for the year: Budgeted sales during the year 5,000 units Actual sale
cupoosta [38]

Answer:

$125,000 Adverse variance as the cost actually incurred is higher.

Explanation:

The first step here is to find the Flexed Variable Overhead Cost by using the unitary method:

Budgeted overhead cost for 10,000 budgeted hrs = $2500,000

Budgeted overhead cost for 1 budgeted hrs = $2500,000 / 10000 bud. hrs

Budgeted overhead cost for 1 budgeted hrs = $250 per standard hr

And as we know that

Flexed Variable Overhead Budget = Actual Units * Budgeted overhead cost for standard hr

By simply putting values we have:

Flexed Variable Overhead Budget = 9000 hours * $250 per standard hr

= $2,2500,000

Now we will find the Flexible-budget Variable Overhead Variance by taking the difference of Variable overhead flexible budget and Actual Variable Overhead.

Flexible-budget Variable Overhead Variance = Variable overhead flexible budget - Actual Variable Overhead

By putting the values we have:

Flexible-budget Variable Overhead Variance = $2,2500,000 - $2,375,000

= $125,000 Adverse variance as the cost actually incurred is higher.

6 0
3 years ago
Read 2 more answers
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