Provide answer this accounting question not use chatgpt Company X is in the household goodsindustry. The stocks of companies in thatindustry have consistently had P/E ratiosthat have averaged 8.4. Company X mostrecently reported a net income of $42,000and there were 55,500 shares of commonstock outstanding.What would be the estimated value ofCompany X stock using this information?

Step 1: Define Price to Earnings RatioThe price to earnings ratio is one of the financial ratios…

Answered: Company X is in the household goods…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

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ABD common stock is selling for $36.08 a share. The company has earnings per share of S.34 and a book value per share of S12.19. What is the market-to-bok ratio?
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Ames, Inc., has a current stock price of $58. For the past year, the company had a net income of $8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. a. What are earnings per share (EPS)? b. What is the Price-earnings ratio? c. What is the Price sales ratio? d. What is Book value per share?
The following information is available for Jase Company: Market price per share of common stock $25.00 Earnings per share on common stock 1.25 Which of the following statements is correct? a. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year. b. The market price per share and the earnings per share are not statistically related to each other. c. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. d. The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year.
International Business Machines (IBM) has earnings per share of $6.85 and a P/E ratio of l15.19. What is the stock price?
On the balance sheet of Bearcat Inc., you notice "Common Stock ($0.10 par)" of $248,655, "Capital Surplus" of $282,621, and "Retained Earnings" of $210,534. If Bearcat Inc. has Sales of $292,6836 and a profit margin of 30.52%, what is the price/earnings (P/E) ratio of the firm if their stock is currently selling for $21.94 per share? O None of these options are correct 67.18 54.97 240.97 61.07 DISCL
(Market valur ratios) Garret Industries has a price/earnings ratio of 16.29X. a) If Garret's earnings per share are $1.35, what is the price per share of Garret,s stock? b) Using the price per share you found in part (a), determine the price/book ratio if Garret,s equity book value per share is $9.58.
The Gizmo, Inc. has just announced year-end results as follows: a. Calculate the book value per share. b. Calculate earnings per share. c. Calculate Gizmo, Inc.'s dividend yield. d. Calculate the market-to-book ratio. a. The book value per share is $ Value of company assets Value of company liabilities Net income Common stock dividends Preferred stock dividends (Round to the nearest cent.) Number of shares of common stock outstanding Closing price of Gizmo, Inc.'s stock $11,440,000 $5,597,242 $1,661,997 $180,572 $427,107 831,680 $43.77 per share
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The following is a list of P/E ratios (current stock price divided by company's earnings per share) for 16 companies. 57, 53, 50, 46, 42, 35, 41, 41, 41, 37, 37, 34, 34, 34, 30, 30 Send data to calculator Draw the histogram for these data using an initial class boundary of 29.5, an ending class boundary of 59.5, and 5 classes of equal width. Note that you can add or remove classes from the figure. Label each class with its endpoints. Frequency 6 5+ 4+ 3+ 1 P/E ratio
A company reports earnings per share on common stock of $2.00 when the market price of per share of common stock is $50.000. What is the company’s price-earnings ratio?

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