Blue Bird, Inc. has 1,500 shares of stock outstanding. The price-earnings ratio for 2018 is 21. What is the market price per share of stock? Multiple Choice $24.16 $21.00 $23.94 $26.87 $18.90
Blue Bird, Inc. has 1,500 shares of stock outstanding. The price-earnings ratio for 2018 is 21. What is the market price per share of stock? Multiple Choice $24.16 $21.00 $23.94 $26.87 $18.90
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:Blue Bird, Inc. has 1,500 shares of stock outstanding. The price-earnings ratio for 2018 is 21. What is the market price per share of stock?
Multiple Choice
O
$24.16
$21.00
$23.94
$26.87
$18.90
Transcribed Image Text:Use the following statement of financial position and statement of comprehensive income
Blue Bird, Inc. 2018 Statement of
comprehensive income
Net Sales
Less: Cost of Goods Sold
Less: Depreciation
Earnings Before Interest and Taxes
Less: Interest Paid
Taxable Income
Less: Taxes
Net Income
Blue Bird, Inc.
Statement of
financial position
Years ended
2017 and 2018
$12,630
8,240
1,010
3,380
750
$2,630
920
$1,710
Cash
Accounts rec.
Inventory
Total
2017 2018
$640 $590
1,200 1,390
2,300 2,470
$4,140
$4,450
Net fixed assets
4,640 5,200
Total assets $8,780 $9,650 Total liabilities & equity
Accounts payable
Long-term debt
Common stock
Retained earnings
2017 2018
2,500 2,800
4,000 4,500
1,040 1,690
$8,780 $9,650
Blue Bird, Inc. has 1,500 shares of stock outstanding. The price-earnings ratio for 2018 is 21. What is the market price per share of stock?
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