Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,750 Cost of goods sold 7,800 Depreciation 355 Earnings before interest and taxes $ 1,595 Interest paid 94 Taxable income $ 1,501 Taxes 450 Net income $ 1,051 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 250 $ 270 Accounts payable $ 1,480 $ 1,732 Accounts rec. 1,050 950 Long-term debt 1,040 1,228 Inventory 1,720 1,630 Common stock 3,300 3,000 Total $ 3,020 $ 2,850 Retained earnings 620 870 Net fixed assets 3,420 3,980 Total assets $ 6,440 $ 6,830 Total liab. & equity $ 6,440 $ 6,830 Windswept, Inc., has 520 million shares of stock outstanding. Its price–earnings ratio for 2017 is 20. What is the market price per share of stock?
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,750 Cost of goods sold 7,800 Depreciation 355 Earnings before interest and taxes $ 1,595 Interest paid 94 Taxable income $ 1,501 Taxes 450 Net income $ 1,051 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 250 $ 270 Accounts payable $ 1,480 $ 1,732 Accounts rec. 1,050 950 Long-term debt 1,040 1,228 Inventory 1,720 1,630 Common stock 3,300 3,000 Total $ 3,020 $ 2,850 Retained earnings 620 870 Net fixed assets 3,420 3,980 Total assets $ 6,440 $ 6,830 Total liab. & equity $ 6,440 $ 6,830 Windswept, Inc., has 520 million shares of stock outstanding. Its price–earnings ratio for 2017 is 20. What is the market price per share of stock?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Use the following information to answer this question.
| Windswept, Inc. 2017 Income Statement ($ in millions) |
|||
| Net sales | $ | 9,750 | |
| Cost of goods sold | 7,800 | ||
| 355 | |||
| Earnings before interest and taxes | $ | 1,595 | |
| Interest paid | 94 | ||
| Taxable income | $ | 1,501 | |
| Taxes | 450 | ||
| Net income | $ | 1,051 | |
| Windswept, Inc. 2016 and 2017 ($ in millions) |
|||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Cash | $ | 250 | $ | 270 | Accounts payable | $ | 1,480 | $ | 1,732 | ||||
| Accounts rec. | 1,050 | 950 | Long-term debt | 1,040 | 1,228 | ||||||||
| Inventory | 1,720 | 1,630 | Common stock | 3,300 | 3,000 | ||||||||
| Total | $ | 3,020 | $ | 2,850 | 620 | 870 | |||||||
| Net fixed assets | 3,420 | 3,980 | |||||||||||
| Total assets | $ | 6,440 | $ | 6,830 | Total liab. & equity | $ | 6,440 | $ | 6,830 | ||||
Windswept, Inc., has 520 million shares of stock outstanding. Its price–earnings ratio for 2017 is 20. What is the market price per share of 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!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education