The Beautiful Flower Company. has earnings of $1.44 per sharee. a. If the benchmark PE for the company is 13, how much will you pay for the stock? b. If the benchmark PE for the company is 16, how much will you pay for the stock?

The Beautiful Flower Company. has earnings of $1.44 per sharee. a. If the benchmark PE for the company is 13, how much will you pay for the stock? b. If the benchmark PE for the company is 16, how much will you pay for the stock?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

See similar textbooks

Related questions

Q: PQR Co. has earnings of $2.65 per share. The benchmark PE for company is 22. What stock price (to…

A: The Price-to-Earnings (P/E) ratio is a widely used financial metric that assesses the price of a…

Q: If you own 12,000 shares of stock of Nike and it pays a dividend of $0.21 per share, then what is…

A: The term “dividend” can be defined as the remuneration provided to shareholders of the company on a…

Q: Answer the following as indicated. (Format: problem, then, solution) 6. Calculate the dividends paid…

A: The question is related to Dividends. Dividend paid is calculated with the help of following…

Q: If you own 11,000 shares of stock of Nike and it pays a dividend of $0.28 per share, then what is…

A: When the company receives profits and distributes them among the shareholders. The share of profit…

Q: 6a 6b To assess market performance, calculate Earnings Per Share and Dividend Payout Ratio. Assume…

A: Earnings per share, or EPS, is an important financial metric that shows a company's profitability.…

Q: Refer to Figure and look at the listing for Hewlett Packard Enterprise. a. How many shares could…

A: Dividend Dividends are sums of money given to you by a corporation in exchange for your ownership of…

Q: a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round…

A: The division of a company's current shares into multiple shares is referred to as a stock split. The…

Q: he stock of Payout Inc. will go ex-dividend tomorrow

A: Shareholders are the owners of the company up to the amount they have invested in the shares. The…

Q: You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for…

A: ParticularsValuesNumber of shares purchased1000Purchase Price per share$143Selling price per…

Q: PQR Co. has earnings of $2.66 per share. The benchmark PE for company is 19. What stock price (to…

A: Formula:

Q: A company has earnings of $3.18 per share. The benchmark PE for the company is 18. What stock price…

A: Given:Earnings = $3.18PE = 18

Q: The Blooming Flower Co. has earnings of $1.63 per share. a. If the benchmark PE for the company is…

A: In the given question we require to calculate the price of the stock using PE multiple approach.

Q: If you own 12,000 shares of stock of Nike and it pays a dividend of $0.26 per share, then what is…

A: Dividend is the distribution of the income to the shareholders of the company.Number of shares =…

Q: 4. At the beginning of the year, you purchase a share of stock for $50. Over the year the dividend…

A: Dividend discount model is a model which considers the discounted value of future dividends to…

Q: price! 13. Stock Valuation and PE Ratio The Blooming Flower Co. has earnings of $3.68 per share. The…

A: The PE ratio for the company can be used to estimate the value of the stock.

Q: The stock of Payout Inc. will go ex-dividend tomorrow. The dividend will be $1 per share. There are…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock…

A: Stock Dividends: A stock dividend is a dividend paid by a corporation to its shareholders. In this…

Q: Assume that an investor buys 100 shares of stock at $37 per share, putting up a 65% margin. a. What…

A: A margin account refers to a brokerage account where securities are bought by paying only a portion…

Q: Refer to Figure 2.8 and look at the listing for Hess Midstream Partners. a. How many shares could…

A: Amount = $5,000Hess Midstream Partners closing price = $17.87Dividend = $1.43

Q: If you own 18,000 shares of stock of Nike and it pays a dividend of $0.26 per share, then what is…

A: The dividend is that part of the profit that is distributed among the shareholders of the company.…

Q: The Dahlia Flower Company has earnings of $1.44 per share. If the benchmark PE for the company is…

A: Earning per share is $1.44 per share 1.) Benchmark PE for the company is 13 2.) Benchmark PE is 16…

Q: The Dahlia Flower Company has earnings of $1.48 per share. a. If the benchmark PE for the company is…

A: PE ratio is also known as Price-Earnings ratio. It is the ratio of the stock price to the Earnings…

Q: At the beginning of the year, you purchased a stock for $35. Over the year the dividends paid on the…

A: Purchase price of the stock (P0) = $35 Dividend paid (D) = $2.75 a. Stock price at the end of the…

Q: The Blooming Flower Co. has earnings of $1.87 per share. a. If the benchmark PE for the company is…

A: PE ratio is the ratio of price of share divided by earnings per share of the company. PE=share…

Q: Suppose that you own 2,800 shares of Nocash Corp. and the company is about to pay a 25% stock…

A: Given: Current shareholding =2,800 Stock dividend =25% Current market price =$125

Q: PQR Co. has earnings of $3.13 per share. The benchmark PE for company is 13. What stock price (to…

A: Price Earnings ratio is the ratio of company’s current share price to its earnings per share. It…

Q: A company has just paid an ordinary share dividend of 32 cents and expected to pay a dividend of…

A: "Hi, Thanks for the Question. Since, you asked multiple questions, we will answer the first question…

Q: The Perfect Rose Co. has earnings of $2.10 per share. The benchmark PE for the company is 10.…

A: a.Calculation of Stock Price:The appropriate stock price is $21.

Q: If you own 14,000 shares of stock of Nike and it pays a dividend of $0.26 per share, then what is…

A: Dividend is the return which is to be paid or received on the shares. It is paid or received for…

Q: If the P/E ratio in the company is 5, this means that the owner of the company is receiving $5 for…

A: In this question we need to answer whether the given statement is true or false related to stock…

Q: At the beginning of the year, you purchased a share of stock for $35. Over the year the dividends…

A: We must compute the sum of the stock's capital gain or loss and any dividends received during the…

Question

The Beautiful Flower Company. has earnings of $1.44 per sharee.

a.	If the benchmark PE for the company is 13, how much will you pay for the stock?
b.	If the benchmark PE for the company is 16, how much will you pay for the stock?

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

The Dahlia Flower Company has earnings of $1.44 per share. If the benchmark PE for the company is 13, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. If the benchmark PE for the company is 16, how much will you pay for the stock?
The Dahlia Flower Company has earnings of $1.48 per share. a. If the benchmark PE for the company is 15, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If the benchmark PE for the company is 18, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Stock price b. Stock price
The Blooming Flower Co. has earnings of $1.87 per share. a. If the benchmark PE for the company is 15, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the benchmark PE for the company is 28, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Stock price b. Stock price
Mansukh
b) Guzman Enterprises has three companies, Angel Inc., Charity Inc., and Joy Inc. Each of the companies will pay a dividend of $4 next year. The growth rate in dividends for all three companies is 6 percent. The required return for each company's stock is 9 percent, 12 percent, and 15 percent respectively. What is the stock price for each company? What do you conclude about the relationship between the required return and the stock price?
If the P/E ratio in the company is 5, this means that the owner of the company is receiving $5 for every dollar the company earns Select one: O True O False Next page CHAPTER S-STOCK VALUATION vities CH3 Jump to... ENG 07:09
Answer the following as indicated. (Format: problem, then, solution) 6. Calculate the dividends paid to a stockholder who has 120 shares of stocks that is paying P30 per share.
Suppose that you own 1,800 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $115 per share. a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.) b. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.) c. What will be the number of shares that you hold if the firm splits five-for-four instead of paying the stock dividend?
PQR Co. has earnings of $2.66 per share. The benchmark PE for company is 19. What stock price (to two decimals) would you consider appropriate?
Suppose that you just short sold 100 shares of Quiet Minds stock for $86.00 per share. Required: a. If the initial margin requirement is 60%, how much equity must you invest?
The Perfect Rose Co. has earnings of $2.10 per share. The benchmark PE for the company is 10. a. What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the benchmark PE were 13? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) stock price for pe of 10 stock price for pe of 13
What is the answers and the working