Financial accounting 2 Pluto Flyers, Inc., has balance sheet equityof $6.2 million. At the same time, theincome statement shows net income of$865,000. The company paid dividends of$472,500 and has 120,000 shares of stockoutstanding. If the benchmark PE ratio is20, what is the target stock price in oneyear?

Explanation of Target Stock Price:The target stock price is an estimate of the future value of a…

Answered: Pluto Flyers, 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

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What is the target stock price in one year on these financial accounting question?
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Pluto Flyers, Inc., has balance sheet equity of $6.2 million. At the same time, the income statement shows net income of $865,000. The company paid dividends of $472,500 and has 120,000 shares of stock outstanding. If the benchmark PE ratio is 20, what is the target stock price in one year?