BUSINESS HIGH SCHOOL

Flex Co. just paid total dividends of $975,000 and reported additions to retained earnings of $2,925,000. The company has 675,000 shares of stock outstanding and a benchmark PE of 16.9 times. What stock price would you consider appropriate?

Answers

Answer 1
Answer:

Answer:

Stock price = $97.64

Explanation:

Earnings per share = (Dividend + addition to retained earnings) / Total number of shares

Earnings per share (EPS)= $(975000 + $2,925,000) / 675,000

                                         = $(3900000/675000)

                                         = $5.777777778

EPS = $5.777777778

PE ratio = Stock price / EPS

16.9= Stock price /  $5.777777778

Stock price = 15.4 x  $5.777777778

Stock price = $97.64


Related Questions

HIGH SCHOOL

Tamra and Jacob are married and they file a joint tax return. Tamra received nearly five times the salary that Jacob received. Which of the following statements is true?a.Tamra and Jacob likely pay no tax marriage penalty nor receive a tax marriage benefit.b.Tamra and Jacob likely pay a tax marriage penalty.c.Tamra and Jacob likely receive a tax marriage benefit.d.Tamra and Jacob likely will pay a tax marriage penalty and receive a tax marriage benefit.

Answers

Answer:

C)Tamra and Jacob likely receive a tax marriage benefit.

Explanation:

Tamra is considered the primary bread winner in this marriages since her salary is much higher than Jacob's, therefore she contributes the largest portion of household income. Married couple with a primary breadwinner receive a tax marriage benefit, since they can file their taxes together and tax deductions are higher.

COLLEGE

Organizational members use _____ to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions. cultural maps business confidence indices organizational hierarchies organizational stories

Answers

Answer: organizational stories

Explanation: organizational stories are stories that spring up from organizations and serve to show the norms, values and culture of the organization. They tell of the organisation's past, its experiences including details about managerial actions, changes in strategy and employee interactions. This means that employees cam make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions. Narratives as a key tool for leadership, helps us deal with organizations that which needs to be tended, nurtured and encouraged to grow through inspiration and change.

I believe the answer is Stories
HIGH SCHOOL

Suppose that a person's nominal income rises by 5 percent and the price level rises from 125 to 130. The person's real income will a) rise by about 4 percent.
b) rise by about 1 percent.
c) remain constant.
d) fall by about 1 percent.

Answers

Answer:

b) rise by about 1 percent

Explanation:

Given that a person's nominal income rises by 5 percent and the price level rises from 125 to 130.

Percentage increase in price level = (130 - 125)/125

                                                         = 5/125

                                                          = 1/25 = 4%

Difference between rise in the person's nominal income and rise in price level

= 5% - 4%

= 1%

Hence the right option is b) rise by about 1 percent.

MIDDLE SCHOOL

What is an example of a long-term liability? Mortgage
Tax payment
Doctor’s bill
Electric bill

Answers

Mortgage, I know because I have one!
Mortgage is an example of a long term liability.
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