Given answer accounting questions Plush Pilots, Inc., has balance sheet equity of $5.2 million. Atthe same time, the income statement shows net income of$743,600. The company paid dividends of $423,852 and has130,000 shares of stock outstanding. If the benchmark PEratio is 21, what is the target stock price in one year? (Do notround intermediate calculations and round your final answerto 2 decimal places. (e.g., 32.16))

Step 1:First calculate the growth rate: Growth rate = Retention ratio * Return on equity…

Answered: Plush Pilots, Inc., has 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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