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?

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?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

See similar textbooks

Related questions

Q: What was the direct labor cost variance?

A: Concept of Direct Labor Cost VarianceDirect Labor Cost Variance is the difference between the actual…

Q: I don't know this question solution please help me

A: Explanation of all incorrect options: Option A: The return on equity (ROE) ratio is 1.ROE…

Q: Hello tutor please help me this question general accounting

A: Data:PBO on January 1st: $241,000PBO on December 31st: $279,000Pension Plan Assets (Fair Value) on…

Q: cesi Required information [The following information applies to the questions displayed below] On…

A: Below break down the questions step by step. Information Provided:Land Purchase: Dakota Mining…

Q: Need help this question

A: Step 1: Define Inventory ManagementThe inventory for a firm may be broadly categorized into raw…

Q: Need answer please

A: Explanation of Predetermined Overhead Rate (POHR):The Predetermined Overhead Rate (POHR) is a…

Q: Can you help me with accounting questions

A: Step 1: Definition of Initial Markup PercentageInitial markup percentage is the percentage added to…

Q: Do fast of this question answer general Accounting

A: Step 1: Define Operating Return on Assets (OROA)Operating Return on Assets (OROA) measures how…

Q: Hy expert give me solution

A: Concept of Bank Discount and Proceeds CalculationA bank discount is the interest amount deducted in…

Q: Hi expert please help me this question

A: Step 1: Definition of Overhead CostsOverhead costs include indirect manufacturing expenses, such as…

Q: Compute the amount of raw materials

A: Step 1: Definition of Raw Materials UsedRaw materials used represent the total amount of materials…

Q: Hello tutor please help me this question general accounting

A: Step 1: Definition of Variable CostingThe fixed manufacturing overhead is omitted from the…

Q: Need answer general Accounting

A: Step 1: Define Overapplied and Underapplied OverheadOverapplied overhead occurs when applied…

Q: The Lyons Company's cost of goods

A: Concept of Cost of Goods Manufactured (COGM)Cost of Goods Manufactured (COGM) represents the total…

Q: The following data were selected from the records of Fluwars Company for the year ended December 31,…

A: To determine the balances for sales revenue, accounts receivable, and allowance for doubtful…

Q: need this general accounting subjects solutions

A: Step 1: Definition of Operating LeverageOperating leverage measures the sensitivity of a company's…

Q: Give me solution

A: The P/E ratio measures how much investors are willing to pay for each dollar of a company's…

Q: The following data were selected from the records of Fluwars Company for the year ended December 31,…

A: To determine the balances of Sales Revenue, Accounts Receivable, and Allowance for Doubtful Accounts…

Q: What is the total period cost for the month

A: Step 1:Under the variable costing method, all fixed and variable selling and administrative…

Q: Hi expert please help me this question

A: Step 1: Definition of Gross ProfitGross profit is the amount a company earns from its sales after…

Q: Ans

A: Step 1: Definition of Direct Labor Price VarianceDirect labor price variance measures the difference…

Q: Brentwood Manufacturing forecasts that total overhead for the current year will be $12,000,000 and…

A: Concept of Predetermined Overhead RateThe Predetermined Overhead Rate (POHR) is a cost estimation…

Q: None

A: To calculate the Debt to Equity Ratio, use the formula: Debt to Equity Ratio = Total Debt / Total…

Q: True Ans general Accounting

A: Step 1: Define Flexible Budget VarianceThe flexible budget variance for direct labor measures the…

Q: Need help with this question solution general accounting

A: Step 1: Information givenTotal utility expenses = $36,000Total revenue = $400,000Revenue for Store Y…

Q: Financial accounting

A: Step 1: Definition of Manufacturing overheadManufacturing overhead is referred to as the indirect…

Q: The gross margin for October is

A: Calculation of Gross Margin for October The Gross Margin is calculated using the following formula:…

Q: abc general accounting

A: Step 1: Definition of Inventory TurnoverInventory turnover is an efficiency ratio that measures how…

Q: ?

A: Step 1:ItemExplanationAmountAccount PayableIt is a liability------BuildingsBuildings are generally…

Q: Sales in Northway Inc. increased from $45,000 per year to $48,600 per year while net operating…

A: Explanation of Degree of Operating Leverage (DOL):Degree of Operating Leverage (DOL) measures how a…

Q: 4 POINTS

A: Explanation of Par Value: Par value is the nominal or face value assigned to each share of stock…

Q: It would have reported 2007 gross profit closest to ?

A: Concept of Gross ProfitGross Profit is the difference between a company's total revenue and the cost…

Q: Please help with question is accounting

A: Step 1: Define SalesManagerial accounting information often provides details into a companies…

Q: Solve this question is accounting

A: Step 1: Define Net SalesNet sales are gross sales after adjusting for sales returns and allowances…

Q: none

A: Step 1: Definition of a Promissory NoteA promissory note is a financial instrument in which the…

Q: 5 PTS

A: To calculate the total market value of the firm's equity, we use the formula: Market Value of Equity…

Q: Home Insert Draw Page Layout Formulas Data Review View Automate Developer Calibri (Body) 12 ✓ Α Αν…

A: Step 1: Output: Step 2: Formulas:

Q: Please help me this question general accounting

A: Step 1: Definition of Projected Benefit Obligation (PBO)Projected Benefit Obligation (PBO)…

Q: Hello tutor please provide this question solution general accounting

A: To calculate KLM's total equity, we use the basic accounting equation:Assets = Liabilities +…

Q: Harmony Inc

A: Concept of Joint ProductsJoint products refer to two or more products that are produced…

Q: hi expert please help me answer

A: Step 1: Definition of Maturity ValueMaturity value is the total amount that must be paid on a debt…

Q: Please help me correct my mistakes. for the T account of 2022 and 2023, the ONLY options for…

A: Step 1: In December 2022, for the 4th entry, we need a closing balance of $14,000 in the Allowance…

Q: I want the correct answer with accounting

A: Step 1: Define InterestInterest is a charge against the company's profits mandating its payments…

Q: Solve this financial accounting problem

A: Explanation of Balance Sheet Equity: Balance sheet equity, also known as shareholders' equity or net…

Q: I need accounting question

A: Step 1: Definition of Estimated Cost Using Regression AnalysisIn a linear cost estimation model,…

Q: General accounting

A: Step 1: Definition of Interest ExpenseInterest expense is the cost incurred by a company for…

Q: Don't Use AI

Q: What is the net income for the year

A: Step 1: Define Net IncomeNet income, also called the bottom line, represents the difference between…

Q: What is starbright's predetermined standard variable manufacturing overhead rate?

A: Calculation of Predetermined Standard Variable Manufacturing Overhead RatePredetermined Standard…

Q: Subject:--- financial accounting

A: Formula:1 / (1 + real interest rate) = Current Consumption / Future ConsumptionWhere:Current…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
What is the target stock price in one year on these financial accounting question?
At year end, Sampson Company's balance sheet showed total assets of $80 million, total liabilities of $50 million, and 1,000,000 shares of common stock outstanding. Next year, Malta is projecting that it will have net income of $2.9 million. If the average P/E multiple in Malta's industry is 16, (and this is an average stock) what should be the price of Sampson's stock? O $50.43 O $46.40 O $44.57 O $41.60
Breakaway wealth had net earnings of $336,000 this past year. dividends were paid of $77,280 on the company's book equity of $2,800,000. if Safeway has 175,000 shares outstanding with a current market price of $21 per share, what is the required rate of return?
Sankey Company has earnings per share of $3.25. The benchmark PE is 17.4 times. What stock price would you consider appropriate?
Ames, Inc., has a current stock price of $58. For the past year, the company had a net income of $8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. a. What are earnings per share (EPS)? b. What is the Price-earnings ratio? c. What is the Price sales ratio? d. What is Book value per share?
it gave: current stock price: $40 current retention ratio:0.75. Muji earned $10 million for the fiscal year. The company has 1.25 million shares of common stock outstanding. so, the DPS will be (10x0.25)/1.25=2, this is D0 or D1?
Last year, Rec Room Sports reported earnings per share of $7.80 when its stock price was $140.40. This year. its earnings increased by 25 percent. If the P/E ratio remains constant, what is likely to be the price of the Stock? (Round your answer to 2 declmal places.) Pice bf thssoce
Last year, Rec Room Sports reported earnings per share of $8.50 when its stock price was $212.50.This year, its earnings increased by 20 percent. If the P/E ratio remains constant, what is likely tobe the price of the stock? Explain
Money Inc. announced annual earnings of $5,000,000. The company has 2,500,000 common stock shares outstanding. The benchmark PE multiple for the company is 12.8. Earnings are expected to increase 3.9% annually. What is the estimated current stock price? Group of answer choices $26.75 $32.00 $6.40 $25.60
Rutland Corp's stock price at the end of last year was $30.25 and its earnings per share for the year were $2.45. What was its P/E ratio?