Homework Answers
Earnings per share (EPS) = Net income/Outstanding common shares
Current EPS = 10,000,000/510,000 = $19.61
Price earnings ratio (PE ratio) = Market price per share/Earnings per share
Current PE ratio = 27/19.61 = 1.38
Estimated EPS = 12,500,000/637,500 = $19.61
Expected market price per share = PE ratio * Estimated EPS
= 1.38 * 19.61
= 27.06
Add Answer to:
FE eBook Ferrell Inc. recently reported net income of $10 million. It has 510,000 shares of...
Ferrell Inc. recently reported net income of $9 million. It has 630,000 shares of common stock,...
Ferrell Inc. recently reported net income of $9 million. It has 630,000 shares of common stock, which currently trades at $29 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $13.05 million. Over the next year, it also anticipates issuing an additional 220,500 shares of stock so that 1 year from now it will have 850,500 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will...
Ferrell Inc. recently reported net income of $8 million. It has 280,000 shares of common stock,...
Ferrell Inc. recently reported net income of $8 million. It has 280,000 shares of common stock, which currently trades at $43 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $13.6 million. Over the next year, it also anticipates issuing an additional 70,000 shares of stock so that 1 year from now it will have 350,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will...
P/E AND STOCK PRICE Ferrell Inc. recently reported net income of $5 million. It has 800,000...
P/E AND STOCK PRICE Ferrell Inc. recently reported net income of $5 million. It has 800,000 shares of common stock, which currently trades at $31 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $7.25 million. Over the next year, it also anticipates issuing an additional 160,000 shares of stock so that 1 year from now it will have 960,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its...
P/E AND STOCK PRICE Ferrell Inc. recently reported net income of $2 million. It has 260,000...
P/E AND STOCK PRICE Ferrell Inc. recently reported net income of $2 million. It has 260,000 shares of common stock, which currently trades at $23 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $3.1 million. Over the next year, it also anticipates issuing an additional 91,000 shares of stock so that 1 year from now it will have 351,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its...
Click here to read the eBook: Market Value Ratios P/E AND STOCK PRICE Ferrell Inc. recently...
Click here to read the eBook: Market Value Ratios P/E AND STOCK PRICE Ferrell Inc. recently reported net income of $2 million. It has 260,000 shares of common stock, which currently trades at $23 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $3.1 million. Over the next year, it also anticipates issuing an additional 91,000 shares of stock so that 1 year from now it will have 351,000 shares of...
P/E and Stock Price Fontaine Inc. recently reported net income of $2 milion. It has 640,000...
P/E and Stock Price Fontaine Inc. recently reported net income of $2 milion. It has 640,000 shares of common stock, which currently trades at $33 a share. Fontaine continues to expand and anticipates that 1 year from now, its net income will be $2.5 million. Over the next year it also anticipates issuing an additional 96,000 shares of stock so that 1 year from now it will have 736,000 shares of common stock. Assuming Fontaine's price/earnings ratio remains at its...
Q Search this course ork Module 1 Homework Ass gam-Score 50 00% Save Subnst Assignment for...
Q Search this course ork Module 1 Homework Ass gam-Score 50 00% Save Subnst Assignment for Grading Check My Work (3 remaining) Click here to read the eBook: Market Value Ratios P/E AND STOCK PRICE Ferrell nc. recenty reported net income of $5 mimion. It has 260,000 shares of common stock, which currently trades at $51 now, its net income will be $7.5 million. Over the next year, it also Assuming Ferrelf's price/earnings ratio remains at its current level, what...
Online Network Inc. has a net income of $510,000 in the current fiscal year. There are...
Online Network Inc. has a net income of $510,000 in the current fiscal year. There are 100,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $1.6 million. The $1.6 million is represented by 1,600 different $1,000 bonds. Each $1,000 bond pays 5 percent interest. The conversion ratio is 20. The firm is in a 30 percent tax bracket. a. Compute basic earnings per share. (Do not round intermediate calculations and round your...
eBook Byron Books Inc. recently reported $7 million of net income. Its EBIT was $10.5 million,...
eBook Byron Books Inc. recently reported $7 million of net income. Its EBIT was $10.5 million, and its tax rate was 30%, what was its interest expense? (Hint: write out the headings for an income statement, and then fill in the known values. Then divide $7 million of net income by (1 T) 0.7 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out...
eBook Problem Walk-Through Byron Books Inc. recently reported $6 million of net income. Its EBIT was...
eBook Problem Walk-Through Byron Books Inc. recently reported $6 million of net income. Its EBIT was $10.8 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - 1) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete...
Ferrell Inc. recently reported net income of $8 million. It has 280,000 shares of common stock, which currently trades at $43 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $13.6 million. Over the next year, it also anticipates issuing an additional 70,000 shares of stock so that 1 year from now it will have 350,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will...
P/E AND STOCK PRICE Ferrell Inc. recently reported net income of $5 million. It has 800,000 shares of common stock, which currently trades at $31 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $7.25 million. Over the next year, it also anticipates issuing an additional 160,000 shares of stock so that 1 year from now it will have 960,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its...
P/E AND STOCK PRICE Ferrell Inc. recently reported net income of $2 million. It has 260,000 shares of common stock, which currently trades at $23 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $3.1 million. Over the next year, it also anticipates issuing an additional 91,000 shares of stock so that 1 year from now it will have 351,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its...
Click here to read the eBook: Market Value Ratios P/E AND STOCK PRICE Ferrell Inc. recently reported net income of $2 million. It has 260,000 shares of common stock, which currently trades at $23 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $3.1 million. Over the next year, it also anticipates issuing an additional 91,000 shares of stock so that 1 year from now it will have 351,000 shares of...
P/E and Stock Price Fontaine Inc. recently reported net income of $2 milion. It has 640,000 shares of common stock, which currently trades at $33 a share. Fontaine continues to expand and anticipates that 1 year from now, its net income will be $2.5 million. Over the next year it also anticipates issuing an additional 96,000 shares of stock so that 1 year from now it will have 736,000 shares of common stock. Assuming Fontaine's price/earnings ratio remains at its...
Q Search this course ork Module 1 Homework Ass gam-Score 50 00% Save Subnst Assignment for Grading Check My Work (3 remaining) Click here to read the eBook: Market Value Ratios P/E AND STOCK PRICE Ferrell nc. recenty reported net income of $5 mimion. It has 260,000 shares of common stock, which currently trades at $51 now, its net income will be $7.5 million. Over the next year, it also Assuming Ferrelf's price/earnings ratio remains at its current level, what...
eBook Byron Books Inc. recently reported $7 million of net income. Its EBIT was $10.5 million, and its tax rate was 30%, what was its interest expense? (Hint: write out the headings for an income statement, and then fill in the known values. Then divide $7 million of net income by (1 T) 0.7 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out...
eBook Problem Walk-Through Byron Books Inc. recently reported $6 million of net income. Its EBIT was $10.8 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - 1) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete...
Most questions answered within 3 hours.
-
Use the following set of observed frequencies to test the
independence of the two variables. Variable...
asked 19 minutes ago -
Two kg of ice at -15 °C are placed in a 2 kg bath of water...
asked 19 minutes ago -
Describe the following with suitable
examples.
1- Security Policy Heterogeneity
2-Security Model Heterogeneity
3-Security Mechanism Heterogeneity...
asked 20 minutes ago -
Please Identify the Term "Determinism" in Psychology
asked 19 minutes ago -
The table below represents the number of republicans, democrats
and independent voting on a specific issue....
asked 24 minutes ago -
List and compare different forms of passive transport and active
transport.
asked 32 minutes ago -
In Netherland Dwarf rabbits, dwarf size is determined by allele
N, and normal-size by allele n....
asked 38 minutes ago -
During Heaton Company’s first two years of operations, it
reported absorption costing net operating income as...
asked 53 minutes ago -
Consider testing the
hypotheses:
H0: p = 0.56
H1: p > 0.56
where p is
the...
asked 56 minutes ago -
In a two-factor analysis of variance a main effect is defined as
____.
a. the unique...
asked 1 hour ago -
A bank's loan officer rates applicants for credit. The ratings
are normally distributed with a mean...
asked 1 hour ago -
Fill in the following information for Adipic Acid: molecular
weight, g or ml, mole, melting point,...
asked 1 hour ago