ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The stock price...

Question

Question

ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The stock price is $23.50. What were the firms earn

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

rate positively ..


We know that PE ratio = Stock price/Earning per share

Therefore EPS = Stock price / PE ratio

EPS =		23.5/10
EPS =		$ 2.35

Ans =		$ 2.35

Add a comment

Answer 2

Similar Homework Help Questions

zarar com ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The...

zarar com ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The stock price is $23.50. What were the firm's earnings per share? mainam naman ang nanan ons van hanya mengi sana The firm's earnings per share (EPS) is $ . (Round to the nearest cent.)
QUE// 1(a) ZIPBIT common stock is selling at a P/E of 10 times trailing earnings ....

QUE// 1(a) ZIPBIT common stock is selling at a P/E of 10 times trailing earnings . The stock price is $23.50. what were the firms earnings per share . 1(b) PEGCOR has a P/E ratio of 1.5 . Earnings per share are $ 2.00 and the expressed EPS five years from today is $ 3.22 . Calculate the PEG ratio.
(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to valuation,...

(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions: • the investor's required rate of return is 13 percent, • the expected level of earnings at the end of this year (E1) is $4, • the firm follows a policy of retaining 30 percent of its earnings, • the return on equity (ROE) is 15 percent, and • similar shares of...

Preferred stock outstanding, 1% 200 800 Net income Average number of shares of common stock outstanding...

Preferred stock outstanding, 1% 200 800 Net income Average number of shares of common stock outstanding 300 The annual report of Sweet Cars, Inc., for the year ended December 31, 2018, included the following items (in millions): (Click the icon to view the items on the annual report.) 1. Calculate earnings per share (EPS) and the price-earnings ratio for Sweet Cars' stock. Round to the nearest cent. The price of a share of the company's stock is $35.91. 2. How...
Question 9: (10 points). (Relative valuation of common stock) Using the P/E ratio approach to valuation,...

Question 9: (10 points). (Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions .the investor's required rate of return is 13 percent, the expected level of earnings at the end of this year (E1) is $8, the firm follows a policy of retaining 40 percent of its earnings, the return on equity (ROE) is 15 percent, and similar shares of stock sell at multiples of...
Stock dividend Investor Personal Finance Problem Security Data Company has outstanding 30,000 shares of common stock...

Stock dividend Investor Personal Finance Problem Security Data Company has outstanding 30,000 shares of common stock currently selling at 544 per share. The firm most recently had earnings available for common stockholders of $126,000, but it has decided to retain these funds and is considering a 10% stock dividend in lieu of a cash dividend a. Determine the firm's current eamings per share b. If Sam Waller currently owns 700 shares of the firm's stock, determine his proportion of ownership...

(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to valuation, calcula...

(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock ur following conditions: • the investor's required rate of return is 12 percent, . the expected level of earnings at the end of this year (E) is $8, • the firm follows a policy of retaining 40 percent of its earnings • the return on equity (ROE) is 12 percent, and Similar shares of stock sell...
Financial Learning Systems has 1.8 million shares of common stock outstanding and 63 comma 939 shares...

Financial Learning Systems has 1.8 million shares of common stock outstanding and 63 comma 939 shares of preferred stock. (The preferred pays annual cash dividends of $5.89 a share, and the common pays annual cash dividends of 32 cents a share.) Last year, the company generated net profit (after taxes) of $ 5 comma 765 comma 438. The company's balance sheet shows total assets of $73 million, total liabilities of $ 33 million, and $ 4 million in preferred stock....
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements...

Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $25 par value (no change during the year) $3,750,000 Preferred $8 stock, $100 par (no change during the year) 2,000,000 The net income was $520,000 and the declared dividends on the common stock were $37,500 for the current year. The market price of the common stock is $16.80 per share. For...

000 change at 585 per har Raphael Corporation's common stock is currently selling on a stock...

000 change at 585 per har Raphael Corporation's common stock is currently selling on a stock exch current balance sheet shows the following stockholders' equity section: ok 550.000 20,660 Preferred stock 5% cumulative par value, 1,000 shares authorized, issued, and outstanding Common stock - par value, 4,000 shares authorized, issued. and outstanding..... Retained earnings ...... Total stockholders' equity... . 150.000 $280.000 ck? (Round perhe share of common te Required 1. What is the current market value (price) of this corporation's...

ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The stock price...

Homework Answers

Add Answer to:
ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The stock price...

Post as a guest

Earn Coins

zarar com ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The...

QUE// 1(a) ZIPBIT common stock is selling at a P/E of 10 times trailing earnings ....

(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to valuation,...

Preferred stock outstanding, 1% 200 800 Net income Average number of shares of common stock outstanding...

Question 9: (10 points). (Relative valuation of common stock) Using the P/E ratio approach to valuation,...

Stock dividend Investor Personal Finance Problem Security Data Company has outstanding 30,000 shares of common stock...

(Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to valuation, calcula...

Financial Learning Systems has 1.8 million shares of common stock outstanding and 63 comma 939 shares...

Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements...

000 change at 585 per har Raphael Corporation's common stock is currently selling on a stock...

ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The stock price...

Homework Answers

Add Answer to: ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The stock price...

Post as a guest

Earn Coins

Add Answer to:
ZIPBIT common stock is selling at a P/E of 10.0 times trailing earnings. The stock price...