FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- The Beautiful Flower Company. has earnings of $1.44 per sharee. a. If the benchmark PE for the company is 13, how much will you pay for the stock? b. If the benchmark PE for the company is 16, how much will you pay for the stock?arrow_forwardWhat is the price of a share today if dividend today (D0) is $5, discount rate (R) 10%, and dividend growth rate (g) 3%. (Explain and show all calculations.)arrow_forwardXYZ company has preferred stock that has an annual dividend of $5. If the current market price of a preference share is $30, What is the cost of preference share?arrow_forward
- A stock sells at $15 per share. a. What is the EPS for the company if it has a P/E ratio of 20? Round your answer to the nearest cent. $ b. If the company's dividend yield is 4 percent, what is its dividend per share? Round your answer to the nearest cent. $ c. What is the book value of the company if the price-to-book ratio is 1.5 and it has 400,000 shares of stock outstanding? Round your answer to the nearest dollar. $arrow_forwardWhat is the rate return when 30 shares of atock a purchase for $15/share, are sold for 480? The commission on the sale is $6arrow_forwardA stock is bought for $23.00 and sold for $28.00 one year later, immediately after it has paid a dividend of $2.50. What is the capital gain rate for this transaction?arrow_forward
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