Whispering Winds Corp. had a net income of $1,618,000 and paid dividends to common stockholders of$404,500 in 2022. The weighted average number of shares outstanding in 2022 was 566,300 shares.Whispering Winds Corp.common stock is selling for $30 per share on the NASDAQ. WhisperingWinds Corp.'s price-earnings ratio is: Due to the growing demand for computer software, the PerryCompany has had a very successful year and expects its earnings per share to grow by 25% to reach $5.50for this: year. Estimate the price of the company's common stock assuming the industry's price/earningsratio is 12. JP Morgan Chase Co. (JPM) has earnings per share of $3.39 and a P/E ratio of 11.62. Whatis the price of the stock? (Round your answer to 2 decimal places.)

Question: 1Explanation of Net Income: Net income is the total profit of a company after subtracting…

Answered: Whispering Winds Corp. had a net income…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share x total shares outstanding) of $1,391,000. Furthermore, the firm's income statement for the year just ended has a net income of $505,000, which is $0.232 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 20.54. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? a. What price would you expect Underwood Motors shares to sell for? The market price per share is $ (Round to the nearest cent.)
(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share x total shares outstanding) of $1,314,000. Furthermore, the firm's income statement for the year just ended has a net income of $578,000, which is $0.264 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 21.81. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? a. What price would you expect Underwood Motors shares to sell for? The market price per share is $ (Round to the nearest cent.) C...
(Market value analysis)The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per sharetimestotal shares outstanding) of $ 1,369,000. Furthermore, the firm's income statement for the year just ended has a net income of $ 505,000, which is $ 0.243 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 18.55. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? Question content area bottom Part 1 a.What price would you expect Underwood Motors shares to sell for? The market price per share is $4.51.(Round to the nearest cent.) Part 2 b.What is the book value per share for Underwood's shares? The book value per share is $ ??? enter your response here. (Round to the nearest cent.)
(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share total shares outstanding) of $1,367,000. Furthermore, the firm's income statement for the year just ended has a net income of $513,000, which is $0.276 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 19.86. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? a. What price would you expect Underwood Motors shares to sell for? The market price per share is $. (Round to the nearest cent.)
Ames, Inc., has a current stock price of $58. For the past year, the company had a net income of $8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. a. What are earnings per share (EPS)? b. What is the Price-earnings ratio? c. What is the Price sales ratio? d. What is Book value per share?
You notice that Cisco Computer Systems has a share price of $30.72 and earnings per share of $0.52. Its competitor Hewlett-Packard has earnings per share of $0.36. What is one estimate of the value of Hewlett-Packard shares?
You are analyzing the illiquid stock of a small enterprise, QT Company. In their recently published accounting data they report that the Book Value of Equity is $48,500,000 and they have 22,020,000 shares outstanding. You have decided to compare QT to a close competitor BXZ, Inc., which sells in the market for $6.26 per share. The Book Value of Equity for BXZ is $62,700,000 and they have 37,000,000 shares outstanding. Use the Market-to-Book Ratio for BXZ to make a reasonable estimate of the share price for QT. $3.73 $4.84 $8.14 $19.42
Sheridan Corporation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2024 and 2023 comparative income statements and statement of financial position. The market price of Sheridan's common shares was $40.21 and $38.40 on June 30, 2024, and June 30, 2023, respectively. Sheridan declared dividends per common share of $0.473 and $0.412 for 2024 and 2023, respectively. SHERIDAN CORPORATION Years Ended June 30, 2024 and 2023 (in thousands) Comparative Income Statement Total revenues Total cost of goods sold 2024 2023 $2,292,471 $1,839,262 760,877 570,223 Total operating expenses Net income Statement of Financial Position Total assets 1,252,907 884,482 278,787 299,938 2024 2023 $7,435,933 $5,165,034 Total liabilities 3,940,763 3,795,325 Common share capital 1,449,399 809,798 Total shareholders' equity 3,495,170 1,369,709 Weighted average number of common shares outstanding 252,275 245,016…
Riggins Trucking, Inc. has a current stock price of $41. For the past year, the company had a net income of $5,150,000, total equity of $21,580,000, sales of $39,000,000, and 4.1 million shares of stock outstanding. What is the price-sales ratio? What do market ratios measure? Want detailed answer
In early 2018, Abercrombie & Fitch (ANF) had a book equity of $1,256 million, a price per share of $22.89, and 68.5 million shares outstanding. At the same time, The Gap (GPS) had a book equity of $3,130 million, a share price of $31.83, and 384 million shares outstanding. a. What is the market-to-book ratio of each of these clothing retailers? b. What conclusions do you draw from comparing the two ratios? a. What is the market-to-book ratio of each of these clothing retailers? ANF's market-to-book ratio is (Round to two decimal places.) GPS's market-to-book ratio is . (Round to two decimal places.) b. What conclusions do you draw from comparing the two ratios? In a relative sense, the outlook of Abercrombie & Fitch more favorably than The Gap. For every dollar of equity invested in ANF the market values that dollar today at $1.25 vs. $3.91 for a dollar invested in the GPS. Equity investors are willing to pay relatively more today for shares of ANF than for GPS because they expect ANF…

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