Answered: mpany had a market price of $39.00 per…

mpany had a market price of $39.00 per share, earnings per share of $2.00, and dividends per share of $1.15. Its price-earnings ratio equals:

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 4P: Reno Revolvere has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of...

See similar textbooks

Related questions

Q: Marj Corporation is currently selling for P22 per share. If it i selling at a Price-earnings rat

A: Earnings per share is defined as monetary amount of the earnings per share outstanding of the common…

Q: PQR Co. has earnings of $2.65 per share. The benchmark PE for company is 22. What stock price (to…

A: The Price-to-Earnings (P/E) ratio is a widely used financial metric that assesses the price of a…

Q: The company's asset turnover is 0.9 payout ratio is 0.60 and price earnings ratio is 10, the…

A: The dividend yield is expressed as the shareholder's return on his initial investment amount for…

Q: Compute Topp Company’s price-earnings ratio if its common stock has a market value of $20.54 per…

A: Price to earning ratio = Market price per share/ Earnings per share

Q: 1. Given a price-earnings ratio of 12, EPS of P2.18, and payout ratio of 75%, compute for the…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: Gunter Company has income of $200,000, earnings per share of $2.00, common equity of $2,000,000, and…

A: Given information can be summarized as:Net income = NI = $200,000earnings per share, EPS = $2.00Book…

Q: PQR Co. has earnings of $2.66 per share. The benchmark PE for company is 19. What stock price (to…

A: Formula:

Q: Dellf’s has a profit margin of 3.8 percent on sales of $287,200. The firm currently has 5,000 shares…

A: Given: Profit margin = 3.8% Sales = $287,200 Number of shares = 5,000 Market price = $7.11 per share

Q: The following are forecasts for the Can Corn Corporation for the upcoming year: Earnings before…

A: Particulars Amount (in millions) Earnings before interest and taxes P55 Less: Interest 15…

Q: JPM has earnings per share of $3.75 and P/E of 47. What is the stock price?

A: Detail given for JPM are : Earnings per share = $3.75 P/E ratio = 47 We need to compute the price of…

Q: Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.67 and a book value of equity…

A: 1.The share price is $25.07Computation of share price based on PE ratio:

Q: A company paid $0.82 in cash dividends per share. Its earn dividend yield equals:

A: In this question, we have to calculate dividend yield which can be calculated by dividing the…

Q: Red Company's book value per share is P25, the market to book value ratio is 1.5. If the earnings…

A: Answer - Step 1 - Calculation of Market Value of Shares - Market to book value ratio = Market Price…

Q: The earnings per share of a company is 30 and dividend payout ratio is 60%. Multiplier is 2.…

A: According to Graham & Dodd model ,P = M * whereP = price per shareM = MultiplierD = Dividend per…

Q: A company in the same industry as Company XYZ has a price-to-earnings (P/E) ratio of 15. If Company…

A: Stock valuation can be done in different ways. One way is to discount the free cash flows to find…

Q: You are given the following information: Sales : OMR 100,000 Gross profit ratio : 15% Average stock…

A: Stock turnover ratio: Stock turnover is a ratio that measures the quantity of times inventory is…

Q: O'Brien Inc. has the following data: r RF=5.00%; RP M=6.00%; and b=1.10. What is the firm's cost of…

A: The below expression can be used to calculate the cost of equity:

Q: International Business Machines (IBM) has earnings per share of $6.85 and a P/E ratio of 15.19. What…

A: Given details for IBM are : Earnings per share (EPS) = $6.85 P/E ratio = 15.19 From these details we…

Q: You find a stock selling for $91.26 that has a dividend yield of 1.6 percent and a PE ratio of 12.0.…

A: Dividend is that sum of money which a company pays out on a regular basis to its shareholders. A…

Q: Marj Corporation is currently selling for P22 per share. If it is selling at a Price-earnings ratio…

A: The price earning ratio is calculated by dividing the share price by the earnings per share.

Q: In 20X4, P Co declared dividends totaling $.52 per common share when earnings per share were $1.31…

A: Lets understand the basics. Dividend yield ratio is a ratio which shows how much company is paying…

Q: A company has earnings per share of $9.00. Its dividend per share is $1.35, its market price per…

Q: A Wall Street Journal quotation for a company has the following values: Div: $1.12, PE: 18.3, Close:…

A: Dividend payout ratio can be calculated Dividend payout ratio =Dividend par share/Earning par share…

Q: Pfizer, Inc. (PFE) has earnings per share of $2.09 and a P/E ratio of 11.02. What is the stock…

A: In this question we need to compute the price of stock using PE multiple approach.

Q: A company had a market price of $27.50 per share, earnings per share of $1.25, and dividends per…

A: The ratio analysis helps to analyze the statements of the business including balance sheet and…

Q: (Market valur ratios) Garret Industries has a price/earnings ratio of 16.29X. a) If Garret's…

A: Ratios are an important tool when considering whether to invest in a company or not.

Q: A company has earnings per share of $9.80. Its dividend per share is $.60, its market price per…

A: Price - earnings ratio = market price per share (MPS) / Earnings per share (EPS)

Q: PQR Co. has earnings of $3.13 per share. The benchmark PE for company is 13. What stock price (to…

A: Price Earnings ratio is the ratio of company’s current share price to its earnings per share. It…

Q: O'Brien Inc. has the following data: rRf= 5.00% rPM = 6.00% b = 1.10 What is the firm's cost of…

A: In the Given problem we require to calculate the firm's cost of equity based on CAPM from the…

Q: ABD common stock is selling for $36.08 a share. The company has earnings per share of S.34 and a…

A: Market - to Book Value Ratio refers to the ratio which makes the use of the market price and book…

Q: Calculate the price-earnings ratio for Daffy’s Diner. The firm has earnings per share of $0.635, a…

A: Earnings Per Share (EPS) = $0.635Market-to-book ratio = 3.45Book value = $0.835We need to calculate…

Question

mpany had a market price of $39.00 per share, earnings per share of $2.00, and dividends per share of $1.15. Its price-earnings ratio equals:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Sanedrin Company has an earnings per share (EPS) of $4.50, a value per share of $45 and a market value of $38. Calculate the price/earnings ratio (P/E).
Renew Company has an earnings per share (EPS) of $3.50, a value per share of $35, and a market value of $36. Calculate the price/earnings (P/E) ratio.
A company had a market price of $27.50 per share, earnings per share of $1.25, and dividends per share of $0.40. Its price-earnings ratio equals: 22.0. 93.8. 32.0. 3.3. 3.1.
A company has earnings per share of $9.80. Its dividend per share is $.60, its market price per share is $124.46, and its book value per share is $100. Its price-earnings ratio equals: Multiple Choice 10.20. 9.80. 8.70. 16.33. 12.70.
A company has an EPS of $2.40, a book value per share of $21.84,and a market/book ratio of 2.73. What is its P/E ratio?
A company has earnings per share of $9.00. Its dividend per share is $1.35, its market price per share is $107.10, and its book value per share is $83. Its price-earnings ratio equals: Multiple Choice 11.90. 9.22. 6.67.
Gunter Company has income of $200,000, earnings per share of $2.00, common equity of $2,000,000, and market to book ratio of 0.20. Given this information, what is the market price per share of Gunter Company?
Pfizer, Inc. (PFE) has earnings per share of $2.09 and a P/E ratio of 11.02. What is the stock price?
(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.
Recto Co. has a price earnings ratio of 10, earnings per share of P2.00, and a pay out ratio of 75%. The dividend yield is a. 25.0% b. 22.0% c. 7.5% d. 10.0%
Compute for the price-earnings ratio if the earnings per share are Php 5.50: Market Value per share P.E Ratio 1 27.500 2 30.250 3 22.000 4 17.875 5 28.875
Suppose that in January 2006, Kenneth Cole Productions had EPS of $1.67 and a book value of equity of $8.83 per share, a price to book ratio of 2.84 and P/E ratio 15.01. Estimate KCP’s share price based on PE ratio. Estimate KCP’s share price based on price to book ratio.