Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Please provide this question solution general accounting
Transcribed Image Text:Calculate the estimated price per share using the P/E multiples
approach if a company has a P/E ratio of 15.5, total earnings of
$825,000, and 150,000 shares outstanding.
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- PQR Co. has earnings of $2.66 per share. The benchmark PE for company is 19. What stock price (to two decimals) would you consider appropriate?arrow_forwardSanedrin Company has an earnings per share (EPS) of $4.50, a value per share of $45 and a market value of $38. Calculate the price/earnings ratio (P/E).arrow_forwardA company in the same industry as Company XYZ has a price-to-earnings (P/E) ratio of 15. If Company XYZ's earnings per share (EPS) is $3, what is the estimated value of Company XYZ's stock based on the P/E multiple? a b C d $20 $30 $45 $50arrow_forward
- A company reports earnings per share on common stock of $2.00 when the market price of per share of common stock is $50.000. What is the company’s price-earnings ratio?arrow_forwardA company's stock is trading at $50 per share with a price-to-earnings (P/E) ratio of 20. What is the company's earnings per share (EPS)? a) $1.50 b) $2.00 c) $2.50 d) $3.00arrow_forwardUsing the P/E multiples approach to valuation, What is the estimated price of a stock if the firm’s P/E ratio is 18.2 and it’s earnings are $452,000? Assume that there are 100,000 shares of stock outstanding.arrow_forward
- On the balance sheet of Bearcat Inc., you notice "Common Stock ($0.10 par)" of $248,655, "Capital Surplus" of $282,621, and "Retained Earnings" of $210,534. If Bearcat Inc. has Sales of $292,6836 and a profit margin of 30.52%, what is the price/earnings (P/E) ratio of the firm if their stock is currently selling for $21.94 per share? O None of these options are correct 67.18 54.97 240.97 61.07 DISCLarrow_forwardPlease help mearrow_forwardAmes, Inc., has a current stock price of $58. For the past year, the company had a net income of $8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. a. What are earnings per share (EPS)? b. What is the Price-earnings ratio? c. What is the Price sales ratio? d. What is Book value per share?arrow_forward
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