Financial accounting Fly Away, Inc. has a balance sheet equity of $6.3million. At the same time, the income statementshows a net income of $970,200. The companypaid dividends of $504,504 and has 150,000shares of stock outstanding. If the benchmark PEratio is 27, what is the target stock price in oneyear?

Step 1: Define Target Stock PriceTarget stock price is the desired value of a stock that a company…

Answered: Fly Away, Inc. has a balance sheet…

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

Problem 2MAD

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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?