The following information has been taken from the Muscat Company: Sales return 1,450 Other revenue 130,000 5,000 5,000 freight and transportation out Interest expense Preferred stock dividends 4,000 Repair Expenses 10,000 Gross profit 50,000price-earnings ratio number of common shares 2,000 income tax rate 40% outstanding Required: Compute the market price per share and explain the result

The following information has been taken from the Muscat Company: Sales return 1,450 Other revenue 130,000 5,000 5,000 freight and transportation out Interest expense Preferred stock dividends 4,000 Repair Expenses 10,000 Gross profit 50,000price-earnings ratio number of common shares 2,000 income tax rate 40% outstanding Required: Compute the market price per share and explain the result

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Marj Corporation is currently selling for P22 per share. If it is selling at a Price-earnings ratio of 12, calculate Marj Corporation’s recent earnings per share. a. P1.83 b. P0.55 c. P2.20 d. P0.45
The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,940 Debt 31,500 Equity Sales Costs Taxable income Taxes (21%) Net income $ 20,100 Current assets 13,800 Fixed assets Internal growth rate $ 6,300 1,323 $ 4,977 Total $ 43,440 % $ 16,420 27,020 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Total $ 43,440
find the missing value
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What is the price earnings ratio for this company? Round your answer to one decimal point. Assets: Cash and short-term investments $ 40,000 Accounts receivable (net) 25,000 Inventory 20,000 Property, plant and equipment 210,000 Total assets $295,000 Liabilities and Stockholders' Equity Current liabilities 60,000 Long-term liabilities 85,000 Stockholders' equity-common 150,000 Total liabilities and stockholders' equity $295,000 Income Statement Net sales $ 85,000Cost of goods sold…
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