Question:The Perfect Rose Co. hasearnings of $2.00 pershare.The benchmark PE for thecompany is 13. What stockprice would you considerappropriate? (Do not roundintermediate calculations)What is the stock price ifthe benchmark PE was16?(Do not round intermediatecalculations)

To determine the appropriate stock price for The Perfect Rose Co., we will use the formula:Stock…

Answered: Question: The Perfect Rose Co. has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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NAME Herbalife Nutrition Herc Holdings Heritage Insurance Holdings HRTG Hersha Hospitality Trust CIA HT Hershey HSY HTZ SYMBOL CLOSE NET CHG 57.94 -1.39 26.86 -0.71 14.57 -0.38 Hertz Global Holdings Hess Corp. Hess Midstream Partners HLF HRI HES HESM Hewlett Packard Enterprise HPE 16.59 -0.16 106.24 0.80 -0.77 13.27 42.39 0.15 17.87 0.25 13.18 -0.28 VOLUME DIV YIELD P/E 1,149,773 60.41 389,826 72.99 81,929 19.15 732,879 24.16 1,145,889 114.63 52 WK 52 WK HIGH LOW 34.16 1.20 2.07 47.75 -1.71 24.16 3.10 3.35 12.85 0.24 1.65 22.01 -1.02 2,965,201 25.14 16.50 1.12 6.75 ...dd -5.42 89.10 2.89 2.72 22.00 -0.88 13.01 2.24 -2.78 35.59 1.00 2.36 ...dd 47,899 24.51 16.17 1.43 8.00 14.60 12.09 0.45 3.41 11.46 5,969,511 74.81 11,756,695 19.48 **** **** YTD %CHG Figure 2.8 Listing of stocks traded on the New York Stock Exchange Source: WSJ Online, January 4, 2019. 4.67 5.24 -0.23
Jersey Medical earns $12.50 a share, sells for $100, and pays a $6 per share dividend. The stock is split two for one and a $3 per share cash dividend is declared. a. What will be the new price of the stock? Round your answer to the nearest dollar. $ b. If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place. Payout ratio before the split: Payout ratio after the split: % %

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Question: The Perfect Rose Co. has earnings of $2.00 per share. The benchmark PE for the company is 13. What stock price would you consider appropriate? (Do not round intermediate calculations) What is the stock price if the benchmark PE was16? (Do not round intermediate calculations)