National Inc. recently reported net income of P1,500,000. The company has 300,000 shares of common stock, and it currently trades at P65 a share. The company continues to expand and anticipates that one year from now its net income will be P2,500,000. Over the next year the company also anticipates issuing an additional 100,000 shares of stock, so that one year from now the company will have 400,000 shares of common stock. Assuming the company's price/earnings ratio remains at its current level, what will be the company's stock price one year from now? * Q
National Inc. recently reported net income of P1,500,000. The company has 300,000 shares of common stock, and it currently trades at P65 a share. The company continues to expand and anticipates that one year from now its net income will be P2,500,000. Over the next year the company also anticipates issuing an additional 100,000 shares of stock, so that one year from now the company will have 400,000 shares of common stock. Assuming the company's price/earnings ratio remains at its current level, what will be the company's stock price one year from now? * Q
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:National Inc. recently reported net income of P1,500,000. The company has 300,000 shares of
common stock, and it currently trades at P65 a share. The company continues to expand and
anticipates that one year from now its net income will be P2,500,000. Over the next year the
company also anticipates issuing an additional 100,000 shares of stock, so that one year from
now the company will have 400,000 shares of common stock. Assuming the company's
price/earnings ratio remains at its current level, what will be the company's stock price one
year from now? *
Sample format: 11.11
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