Fly Away, Inc. has a balance sheet equity of $6.3 million. At the same time, the income statement shows a net income of $970,200. The company paid dividends of $504,504 and has 150,000 shares of stock outstanding. If the benchmark PE ratio is 27, what is the target stock price in one year?

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
Section: Chapter Questions
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General accounting

Fly Away, Inc. has a balance sheet equity of $6.3
million. At the same time, the income statement
shows a net income of $970,200. The company
paid dividends of $504,504 and has 150,000
shares of stock outstanding. If the benchmark PE
ratio is 27, what is the target stock price in one
year?
Transcribed Image Text:Fly Away, Inc. has a balance sheet equity of $6.3 million. At the same time, the income statement shows a net income of $970,200. The company paid dividends of $504,504 and has 150,000 shares of stock outstanding. If the benchmark PE ratio is 27, what is the target stock price in one year?
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