Penguin, Incorporated, has balance sheet equity of $5.8 million. At the same time, theincome statement shows net income of $864,200. The company paid dividends of$466,668 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 22,what is the target stock price in one year? Assume the firm will grow at the sustainablegrowth rate. (Do not round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)Target stock price

The sustainable growth rate (SGR) is a financial measure that represents the rate at which a company…

Answered: Penguin, Incorporated, has balance…

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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