The Sleeping Flower Co. has earnings of $1.66 per share. 1. If the benchmark PE for thecompany is 23, how much will you pay for the stock? (Do not round intermediate calculations.Round the answer to 2 decimal places.) 2. If the benchmark PE for the company is 26, howmuch will you pay for the stock? (Do not round intermediate calculations. Round the answerto 2 decimal places.) The market price of one share of stock is $43.00 and the firm's earningsper share of stock is $2.62. Calculate the price-earnings ratio for the firm.

3. Calculate the price-earnings (P/E) ratio for the firm. The P/E ratio is calculated using the…

Answered: The Sleeping Flower Co. has earnings of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

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The Dahlia Flower Company has earnings of $1.48 per share. a. If the benchmark PE for the company is 15, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If the benchmark PE for the company is 18, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Stock price b. Stock price
The Dahlia Flower Company has earnings of $1.44 per share. If the benchmark PE for the company is 13, how much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. If the benchmark PE for the company is 16, how much will you pay for the stock?
The Perfect Rose Co. has earnings of $2.10 per share. The benchmark PE for the company is 10. a. What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the benchmark PE were 13? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) stock price for pe of 10 stock price for pe of 13
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Question: The Perfect Rose Co. has earnings of $2.00 per share. The benchmark PE for the company is 13. What stock price would you consider appropriate? (Do not round intermediate calculations) What is the stock price if the benchmark PE was16? (Do not round intermediate calculations)
The preference share of Acme International is selling currently at $107.4. If your required rate of return is 8.7 per cent, what is the dividend paid by this share? Round your answer to 2 decimal places. E.g. if the final value is $12345.8342, please type 12345.83 in the answer box (do not type the dollar sign).
Jersey Medical earns $12.50 a share, sells for $100, and pays a $6 per share dividend. The stock is split two for one and a $3 per share cash dividend is declared. a. What will be the new price of the stock? Round your answer to the nearest dollar. $ b. If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place. Payout ratio before the split: Payout ratio after the split: % %
Suppose that you own 1,800 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $115 per share. a. What will be the number of shares that you hold after the stock dividend is paid? (Do not round intermediate calculations.) b. What will be the total value of your equity position after the stock dividend is paid? (Do not round intermediate calculations.) c. What will be the number of shares that you hold if the firm splits five-for-four instead of paying the stock dividend?
A stock is bought for $23.25 and sold for $28.69 a year later, immediately after it has paid a dividend of $4.18. What is the capital gain rate for this transaction? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign. A stock is bought for $29.45 and sold for $35.96 a year later, immediately after it has paid a dividend of $3.97. What is the dividend yield for this transaction? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign. You own a portfolio that has $3,764 invested in Stock A and $7,514 invested in Stock B. If the expected returns on these stocks are 9.33% and 11.67%, respectively, what is the expected return on the portfolio? NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign.
On a particular date, FedEx has a stock price of $88.24 and an EPS of $7.36. Its competitor, UPS, had an EPS of $0.30. What would be the expected price of UPS stock on this date, if estimated using the method of comparables? Question content area bottom Part 1 A.$5.40 B. $7.19 C.$8.00 D.$3.60

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