Question

You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today's newspaper. 52-WEEK . YLD VOL NET STOCK HILO (DIV) % PE 100 CLOSE CHG 45.61 2773RJW 1.35 3.7 18 9 ?? -.39 PE 100s a. What was the closing price for this stock that appeared in yesterday's paper? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the company currently has 17 million shares of stock outstanding, what was net income for the most recent four quarters? (Enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89. Do not round intermediate calculations.) a. Yesterday's closing price b. Net income

Answer 1

a. Dividend yield = Dividend / Stock price

0.037 = $1.35 / Stock price

Stock price = $1.35 / 0.037

Stock price = $36.49

Yesterday’s closing price = $36.49 + 0.39

Yesterday’s closing price = $36.88

b. PE = Stock price / EPS

18 = $36.49 / EPS

EPS = $2.03

EPS = Net income / Shares

$2.03 = Net income / 17,000,000

Net income = $2.03(17,000,000)

Net income = $34,459,459.46