Question

Chapter 7, Question #4

The Blooming Flower Co. has earnings of $1.74 per share. points a. If the benchmark PE for the company is 12, how much will y

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer:

Earning per share E=$1.74

1)

PE=12

Stock price =PE*E=12*1.74=20.88

2)

PE=16

Stock price =PE*E=16*1.74=27.84

Add a comment
Know the answer?
Add Answer to:
Chapter 7, Question #4 The Blooming Flower Co. has earnings of $1.74 per share. points a....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The Sleeping Flower Co. has earnings of $1.54 per share. Requirement 1: If the benchmark PE...

    The Sleeping Flower Co. has earnings of $1.54 per share. Requirement 1: If the benchmark PE for the company is 18, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current stock price Requirement 2: If the benchmark PE for the company is 21, how much will you pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current...

  • The Blooming Flower Co. has earnings of $1.46 per share. a. If the benchmark PE for...

    The Blooming Flower Co. has earnings of $1.46 per share. a. If the benchmark PE for the company is 14, how much will you pay for the stock? b. If the benchmark PE for the company is 17, how much will you pay for the stock?

  • The Sleeping Flower Co. has earnings of $1.75 per share. The benchmark PE for the company...

    The Sleeping Flower Co. has earnings of $1.75 per share. The benchmark PE for the company is 18. What stock price would you consider appropriate? (Round your answer to 2 decimal places. (e.g., 32.16)) Stock price $ What if the benchmark PE were 21? (Round your answer to 2 decimal places. (e.g., 32.16)) Stock price $

  • these calculations seem incorrect, please help me find the correct calculations You find the following corporate...

    these calculations seem incorrect, please help me find the correct calculations You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019 and the bonds have a par value of $2,000. Last Yield ?? Company (Ticker) Coupon Xenon, Inc. (XIC) 7000 Kenny Corp. (KCC) 7.280 Williams Co. (WICO) ?? Maturity Jan 15, 2039 Jan 15, 2038 Jan 15, 2045 Last Price 94.343 ?? 94.895 EST $ Vol (000's)...

  • In practice, a common way to value a share of stock when a company pays dividends...

    In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE o. Suppose a company just paid a dividend of $1.17. The dividends are expected to grow at 12 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 19. The required return...

  • In practice, a common way to value a share of stock when a company pays dividends...

    In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.21. The dividends are expected to grow at 16 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 23. The required return...

  • Berta, Inc., currently has an EPS of $3.85 and an earnings growth rate of 7 percent....

    Berta, Inc., currently has an EPS of $3.85 and an earnings growth rate of 7 percent. The benchmark PE ratio is 21. What is the target share price in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Projected stock price

  • In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over th...

    In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.19. The dividends are expected to grow at 14 percent over the next five years. The company has a payout ratio of 30 percent and a benchmark PE of 21. The required return...

  • In practice, a common way to value a share of stock when a company pays dividends...

    In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.36. The dividends are expected to grow at 13 percent over the next five years. In five years, the estimated payout ratio is 40 percent and the benchmark PE ratio is 19. a....

  • Saved Chapter 8 Homework Domergue Corp. currently has an EPS of $3.76, and the benchmark PE...

    Saved Chapter 8 Homework Domergue Corp. currently has an EPS of $3.76, and the benchmark PE for the company is 21. Earnings are expected to grow at 5.1 percent per year. Suped a. What is your estimate of the current stock price? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT