how is the market price per share of common stock determined
how is the market price per share of common stock determined
Homework Answers
When we invest in a stock, we buy at the market price. Though the market prices suggest a stock’s value based on the wisdom of the crowds, markets can be erratic, because the market price of a stock can change rapidly and the stock prices of similar companies can be very different. Do our own homework to determine if these prices are sensible by comparing a company’s stock price to fundamental measures of the firm. The market price of a stock can be evaluated as cheap, fair, or rich by comparison with earnings per share, book value per share or sales per share.
The following information is available for Jase Company: Market price per share of common stock $25.00...
The following information is available for Jase Company: Market price per share of common stock $25.00 Earnings per share on common stock $2.00 Which of the following statements is correct? A. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. B. The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of...
The market price for Earnest Corporation common stock is $44 per share. The price at the...
The market price for Earnest Corporation common stock is $44 per share. The price at the end of 1 year is expected to be $49, and dividends for next year should be $1.75. What is the expected rate of return?
Calculate the price-earnings ratio from the following information. Market price per share of common stock $42.5...
Calculate the price-earnings ratio from the following information. Market price per share of common stock $42.5 Earnings per share of common stock $2.5 a. 18 b. 16 c. 17 d. 22
The market price of a share of stock is determined by a. the New York Stock...
The market price of a share of stock is determined by a. the New York Stock Exchange. b. the company's management. c. individuals buying and selling the stock. d. the Federal Reserve.
The market price of the common stock of PQR Inc. is $70 per share. There are...
The market price of the common stock of PQR Inc. is $70 per share. There are 2,000 shares outstanding PQR is considering a preemptive rights offering. Each current shareholder will get one right for every two shares owned. With each right and a $40 payment a new share can be purchased. Assume all the rights are exercised. What will be the market cap of PQR after the exercise of the preemptive rights?
common share outstanding 25,000,00 book value per share common stock $5 market value per share of...
common share outstanding 25,000,00 book value per share common stock $5 market value per share of common stock $30 total assets $350,000,000 what is the market capitalization?
A company's common stock has a market price of $38.00 per share and an expected dividend...
A company's common stock has a market price of $38.00 per share and an expected dividend of $2.50 per share at the end of the coming year. The growth rate in dividends has been 3%, and the company expects to be able to maintain this growth rate forever. If the company issues new shares, the issue costs are expected to be $3.00 per share. What is the component cost of new common equity raised internally by reinvesting earnings for the...
Clarion Segway common stock has a market price of $31 per share and an expected dividend...
Clarion Segway common stock has a market price of $31 per share and an expected dividend of $2.62 per share at the end of the coming year. The dividends paid on the outstanding stock over the past four years are as follows: Year Dividend $2.09 $2.11 $2.28 $2.47 (Express your answer to four decimal The cost of the firm's common stock equity is places such as .xxxx.) Your Answer: Answer
The market o price of the common stock of PQR Inc. is $70 per share. There...
The market o price of the common stock of PQR Inc. is $70 per share. There are 2,000 shares outstanding. PQR is considering a preemptive rights offering. Each current shareholder will get one right for every two shares owned. With each right and a $40 payment a new share can be purchased. Assume all the rights are exercised. What will be the number of shares outstanding for PQR after the exercise of the preemptive rights?
Triton Corporation reported the following for 2018: Earnings/share: Market price per share of common stock: $19.68...
Triton Corporation reported the following for 2018: Earnings/share: Market price per share of common stock: $19.68 $55 Net income: Dividends/share: What is the dividend yield for Triton Corporation? (Round your final answer to two decimal places, XXX% $45,000 $5.14 О 9.35% C) 26.12% О 35.78% 45.13%
The market price of a share of stock is determined by a. the New York Stock Exchange. b. the company's management. c. individuals buying and selling the stock. d. the Federal Reserve.
The market price of the common stock of PQR Inc. is $70 per share. There are 2,000 shares outstanding PQR is considering a preemptive rights offering. Each current shareholder will get one right for every two shares owned. With each right and a $40 payment a new share can be purchased. Assume all the rights are exercised. What will be the market cap of PQR after the exercise of the preemptive rights?
Clarion Segway common stock has a market price of $31 per share and an expected dividend of $2.62 per share at the end of the coming year. The dividends paid on the outstanding stock over the past four years are as follows: Year Dividend $2.09 $2.11 $2.28 $2.47 (Express your answer to four decimal The cost of the firm's common stock equity is places such as .xxxx.) Your Answer: Answer
The market o price of the common stock of PQR Inc. is $70 per share. There are 2,000 shares outstanding. PQR is considering a preemptive rights offering. Each current shareholder will get one right for every two shares owned. With each right and a $40 payment a new share can be purchased. Assume all the rights are exercised. What will be the number of shares outstanding for PQR after the exercise of the preemptive rights?
Triton Corporation reported the following for 2018: Earnings/share: Market price per share of common stock: $19.68 $55 Net income: Dividends/share: What is the dividend yield for Triton Corporation? (Round your final answer to two decimal places, XXX% $45,000 $5.14 О 9.35% C) 26.12% О 35.78% 45.13%
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