Financial Accounting Question please answer Blossom Petals Inc. has earnings of $2.10 per share.1. If the benchmark P/E ratio for the company is 21, howmuch will you pay for the stock? (Round the answer to 2decimal places.)2. If the benchmark P/E ratio for the company is 25, howmuch will you pay for the stock? (Round the answer to 2decimal places.)

Step 1: Define tock Price using P/E RatioThe Price-to-Earnings (P/E) Ratio is used to determine the…

Answered: Blossom Petals Inc. has earnings of…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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The Dahlia Flower Company has earnings of $1.44 per share. If the benchmark PE for the company is 13, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. If the benchmark PE for the company is 16, how much will you pay for the stock?
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Question: The Perfect Rose Co. has earnings of $2.00 per share. The benchmark PE for the company is 13. What stock price would you consider appropriate? (Do not round intermediate calculations) What is the stock price if the benchmark PE was16? (Do not round intermediate calculations)
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I need help to determine the following; 6. For P & B Manufacturing to assess its market performance, I need help to calculate the earnings per share AND the dividend payout ratio (the par value of the company’s common stock is $10 per share). Include calculations and round answers to 2 decimal places.
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