Velocity Ventures, Inc. has balance sheet equity of $6.8 million. At the same time, the income statement shows net income of $950,000. The company paid dividends of $540,000 and has 150,000 shares of stock outstanding. If the benchmark P/E ratio is 18, what is the target stock price in one year?

Velocity Ventures, Inc. has balance sheet equity of $6.8 million. At the same time, the income statement shows net income of $950,000. The company paid dividends of $540,000 and has 150,000 shares of stock outstanding. If the benchmark P/E ratio is 18, what is the target stock price in one year?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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What was the target stock price in one year? Give me solution fast general accounting question

Velocity Ventures, Inc. has balance sheet equity of $6.8 million. At the same time, the
income statement shows net income of $950,000. The company paid dividends of $540,000
and has 150,000 shares of stock outstanding. If the benchmark P/E ratio is 18, what is the
target stock price in one year?

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