The average price to earnings ratio for the soft beverage industry is 25. If Coca Cola has an earnings per share of 2.10, what would you pay for this stock? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST CENT (2 Decimals).
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The average price to earnings ratio for the soft beverage industry is 25. If Coca Cola...
You notice that Coca-Cola has a stock price of $42.01 and EPS of $1.86. Its competitor PepsiCo has EPS of $3.71. But, Jones Soda, a small batch Seattle-based soda producer has a P/E ratio of 35.4. Based on this information, what is one estimate of the value of a share of PepsiCo stock? One share of PepsiCo stock is valued at? (Round to the nearest cent.)
Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Coca-Cola Fiscal Year Ended: 2015 2014 2013 Net Sales $44,300 $46,000 $46,800 Accounts Receivable 4,290 4800 4,930 Allowance for Doubtful Accounts 350 330 60 Accounts Receivable, Net of Allowance...
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $730,000 Preferred dividends $41,000 Shares of common stock outstanding 65,000 Market price per share of common stock $87.98 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. $ b. Determine the company's price-earnings ratio. Round to one decimal place.
Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $52 a share, plus a total commission of $35 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.10 per share for the first year and $1.18 per share the second year. Also, assume that at the end of two years, you sold your Coca-Cola stock for $60 a share minus a total commission of $35 to sell the...
PRICE/EARNINGS RATIO A company has an EPS of $3.30, a book value per share of $30.69, and a market/book ratio of 3.7x. what is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places.
PRICE/EARNINGS RATIO A company has an EPS of $4.20, a book value per share of $39.06, and a market/book ratio of 1.9x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places.
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...
Problem 4-5 Price/Earnings Ratio A company has an EPS of $4.05, a book value per share of $43.74, and a market/book ratio of 3.0x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places.
Click here to read the eBook: Market Value Ratios PRICE/EARNINGS RATIO A company has an EPS of $3.60, a book value per share of $37.08, and a market/book ratio of 2.5x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places. x
Assume that the average firm in your company's industry is expected to grow at a constant rate of 4% and that its dividend yield is 8%. Your company is about as risky as the average firm in the industry and just paid a dividend (D0) of $2.75. You expect that the growth rate of dividends will be 50% during the first year (g0,1 = 50%) and 25% during the second year (g1,2 = 25%). After Year 2, dividend growth will...