Answered: Cleveland Corporation has 100,000…

Cleveland Corporation has 100,000 shares of common stock outstanding, its net income is $750,000, and its P/E is 8. What is the company’s stock price?

Foundations of Business (MindTap Course List)

6th Edition

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter16: Mastering Financial Management

Section: Chapter Questions

Problem 2DQ

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Concept explainers

Budgets

A budget is the sum of the amount allocated for a specific purpose and the summary of expected expenses with a plan to meet them. In general, the word 'budget' is used for the financial planning of an individual or an organization for their estimated income and spending.

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Cleveland Corporation has 100,000 shares of common stock outstanding, its net income is $750,000,
and its P/E is 8. What is the company’s stock price?

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