Need help 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?

1. First, we need to calculate the Earnings Per Share (EPS): EPS = Net Income / Number of Shares…

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?