Need answer Felton Inc. recently reported a net income of $3.2 million.It has 420,000 shares of common stock, which currently tradesat $45 per share. Felton continues to expand and anticipatesthat one year from now, its net income will be $5.1 million.Over the next year, it also anticipates issuing an additional80,000 shares of stock, so that one year from now, it willhave 500,000 shares of common stock.Assuming its price/earnings (P/E) ratio remains at itscurrent level, what will be its stock price one year fromnow?

Current Earning Per Share = Current Net Income/Current Shares OutstandingCurrent Earning Per Share =…

Answered: Felton Inc. recently reported a net…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

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Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 8P

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Ferrell Inc. recently reported net income of $9 million. It has 470,000 shares of common stock, which currently trades at $47 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $12.15 million. Over the next year, it also anticipates issuing an additional 47,000 shares of stock so that 1 year from now it will have 517,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent. $
Ferrell Inc. recently reported net income of $8 million. It has540,000 shares of common stock, which currently trades at $21 a share. Ferrell continuesto expand and anticipates that 1 year from now its net income will be $13.2million. Over the next year, it also anticipates issuing an additional 81,000 shares ofstock so that 1 year from now it will have 621,000 shares of common stock. AssumingFerrell’s price/earnings ratio remains at its current level, what will be its stock price1 year from now?
What will be its stock price one year from now?
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Taggart Goods Corp. just reported a net income of $11,000,000, and its current stock price is $23.00 per share. Taggart is forecasting an increase of 25% for its net income next year, but it also expects it will have to issue 2,300,000 new shares of stock (raising its shares outstanding from 5,500,000 shares to 7,800,000 shares). If Taggart’s forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does management expect its stock price to be one year from now? $20.24 per share $23.00 per share $15.18 per share $25.30 per share One year later, Taggart Goods Corp.’s stock is trading at $38.00, and the company reports its common equity value as $31,574,400. What is Taggart Goods Corp.’s market-to-book (M/B) ratio? Is it possible for a company to have a negative EPS and thus a negative P/E ratio?.
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