Plush Pilots, Inc., has balance sheet equity of $5.4 million. At the same time, the income statement shows net income of $783,000. The company paid dividends of $438,480 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 18, what is the target stock price in one year?
Plush Pilots, Inc., has balance sheet equity of $5.4 million. At the same time, the income statement shows net income of $783,000. The company paid dividends of $438,480 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 18, what is the target stock price in one year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Plush Pilots, Inc., has balance sheet equity of $5.4 million. At the
same time, the income statement shows net income of $783,000.
The company paid dividends of $438,480 and has 100,000 shares of
stock outstanding. If the benchmark PE ratio is 18, what is the target
stock price in one year?
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