What is the target stock price in one year on these financial accounting question? Skybound Corporation has a balance sheet equity of $8.5 million. Theincome statement shows a net income of $1,250,000, and the companypaid dividends of $600,000. The company has 200,000 shares of stockoutstanding. If the benchmark P/E ratio is 30, what is the target stockprice in one year?

Step 1: Define Target Stock PriceThe target stock price is the estimated future price of a company's…

Answered: Skybound Corporation has a balance…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 2P

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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.)
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Skybound Corporation has a balance sheet equity of $8.5 million. The income statement shows a net income of $1,250,000, and the company paid dividends of $600,000. The company has 200,000 shares of stock outstanding. If the benchmark P/E ratio is 30, what is the target stock price in one year?