A company has a reported net income of RM12 million and 60 million shares outstanding. a) Estimate the stock’s market price if the price earning (P/E) ratio is 14.0 b) What is the company’s value by market capitalization?

A company has a reported net income of RM12 million and 60 million shares outstanding. a) Estimate the stock’s market price if the price earning (P/E) ratio is 14.0 b) What is the company’s value by market capitalization?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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Question

A company has a reported net income of RM12 million and 60
million shares outstanding.
a) Estimate the stock’s market price if the price earning (P/E)
ratio is 14.0
b) What is the company’s value by market capitalization?

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