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inna [77]
3 years ago
8

Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $8,000,000 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 1,500,000 new shares of stock (raising its shares outstanding from 5,500,000 to 7,000,000). If Cold Goose's forecasr 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?
Business
1 answer:
Harrizon [31]3 years ago
8 0

Answer:

$14.49

Explanation:

Present P/E ratio = Current stock price/(Net income/Shares outstanding)

Present P/E ratio = 14.75/($8,000,000/5,500,000 shares)

Present P/E ratio = 10.1406

EPS after 1 year = 8000000*125%/ 7000000

EPS after 1 year = 1.4286

Stock price = EPS after 1 year * Present P/E ratio

Stock price= 1.4286* 10.1406

Stock price = $14.49

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Answer:

Break-even point=  600 units

Explanation:

Giving the following information:

The selling price per dozen is $20, variable costs are $14 per dozen, and total fixed costs are $3600.

The break-even point in units is the number of units required to cover for the fixed costs. We need to use the following formula to calculate it:

Break-even point= fixed costs/ contribution margin

Break-even point= 3,600/ (20 - 14)= 600 units

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4 years ago
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There is no "one way to word" this answer but it is a tool to help you know how much you can produce between two products.

Explanation:

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2 years ago
Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity
stiks02 [169]

Answer:

0.175  or 17.5%

Explanation:

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4 years ago
What is the food service term for the amount of money remaining from a sale after subtracting the sold itemâ s cost from its sel
Anestetic [448]

Answer:

<h2>The answer for this question is contribution margin or option 3 from the answer options or list.</h2>

Explanation:

  • In Business and Accounting, the contribution margin basically refers to the difference between the price of any product or service and the variable cost of production. Contribution margin for per unit of product or service also represents the additional profit of the firm or company based on its marginal variable cost or expense and the per unit product or service price.
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3 years ago
The Fed decreasesdecreases the quantity of money. In the short​ run, the quantity of money demanded​ ______ and the nominal inte
hjlf

Answer:

B decreases; rises

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This is a shift to the left in the supply curve therefore, quantity decrease and price rises. In this case, as we are referring to the money market the interest rates rises. As interest regulates the investment and consumption in the economy people will prefer to save more given the rise in interest rate therefor consumption will also decay making the aggregate demand to adjust for the new interest rate.

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