The Sleeping Flower Co. has earnings of $4.64 per share. The benchmark PE for the company...

The Sleeping Flower Co. has earnings of $4.64 per share. The benchmark PE for the company is 24.12. What stock price would you consider appropriate?

(Round answer to two decimals, i.e. 32.16)

Expert Solution

PE = Price / EPS

24.12 = Price / $4.64

Price = 24.12 * $4.64

Price = $111.92

jeff jeffy answered 2 years ago

Sankey Co. has earnings per share of $3.60. The benchmark PE is 18.1 times. What stock...

Sankey Co. has earnings per share of $3.60. The benchmark PE is 18.1 times. What stock price would you consider appropriate?

The Blooming Flower Co. has earnings of $3.68 per share.

The Blooming Flower Co. has earnings of $3.68 per share. a. If the benchmark PE for the company is 18, how much will you pay for the stock? (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 21, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Question 19 Espanya Co. has a price-earnings ratio of 10, earnings per share of P2.20, and...

Question 19 Espanya Co. has a price-earnings ratio of 10, earnings per share of P2.20, and a payout ratio of 75%. The dividend yield is Group of answer choices 25.0% 7.5% 10.0% 22.0% Question 20 pts The following were reflected from the records of Mamita Company: EBIT P1,250,000 Interest expense 250,000 Preferred dividends 200,000 Payout ratio 40% Shares outstanding, 2020 Preferred 20,000 Common 25,000 Income tax rate 40% Price-earnings ratio 2 The dividend yield ratio is Group of answer choices...

1/ A company has earnings per share of $9.40. Its dividend per share is $1.15, its...

1/ A company has earnings per share of $9.40. Its dividend per share is $1.15, its market price per share is $115.62, and its book value per share is $92. Its price-earnings ratio equals: Multiple Choice 9.40. 9.79. 8.17. 8.30. 12.30. 2/ A company issues 6%, 4-year bonds with a par value of $200,000 on January 1 at a price of $207,170, when the market rate of interest was 5%. The bonds pay interest semiannually. The amount of each semiannual...

Fun Toys Co. reported a per-share book value of $3.5, earnings per share (EPS) of $2.3,...

Fun Toys Co. reported a per-share book value of $3.5, earnings per share (EPS) of $2.3, and dividend per share (DPS) of 0.85 in its balance sheet on December 31, 2010. In early 2011 analysts made the following forecasts for 2011~2015: EPS growth rate is 4.5%, and DPS growth rate is 2%. The required return for equity is 8.5% percent. Case 1: If the residual earnings are zero after 2015, calculate the value per share at the end of 2010....

QPM has sales per share of $48.08, earnings per share of $7.58, book value per share...

QPM has sales per share of $48.08, earnings per share of $7.58, book value per share of $20.59, and dividends per share of $3.84. You have determined that relevant market multiples for QPM would be a price/sales ratio of 3.6x, a P/E ratio of 22.8x, a price/book ratio of 8.7x, and a dividend yield of 2.22%. You calculate a QPM price per share based on each ratio, and then estimate the value as the simple average of these four prices....

The following information is relevant to the computation of Charlie Co.’s earnings per share to be...

The following information is relevant to the computation of Charlie Co.’s earnings per share to be disclosed on Charlie’s income statement for the year ending December 31, 2020:  2020 net income: $800,000  Common shares activity in 2020: o Shares outstanding at January 1, 2020: 600,000 o Shares issued on May 1, 2020: 24,000 o Treasury shares purchased on July 31, 2020: 60,000  $5,000,000 face value, 2% 10-year convertible bonds were outstanding on January 1, 2020. Each $1,000...

Your task is to estimate equity value per share for Company C. - Earnings per share...

Your task is to estimate equity value per share for Company C. - Earnings per share in year zero is $27.6. - Company C pays dividends once per year at the end of each year. The next dividend will be paid one year from today. - Retention rates and returns on investment. > In years 0 to 6, Company C is projected to reinvest 72% of its earnings back into the firm. The return on this investment is projected to...

Your company has earnings per share of $ 3.58 . It has 1.1 million shares? outstanding,...

Your company has earnings per share of $ 3.58 . It has 1.1 million shares? outstanding, each of which has a price of $ 43 . You are thinking of buying? TargetCo, which has earnings per share of $ 0.90 ?, 1.1 million shares? outstanding, and a price per share of $ 28 . You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. a. If you pay no premium to buy? TargetCo,...

Ryan Company has as a goal that its earnings per share should increase by at least...

Ryan Company has as a goal that its earnings per share should increase by at least 3% each year; this goal has been attained every year over the past decade. As a result, the market price per share of Ryan's common stock also has increased each year. Last year (2015), Ryan's earnings per share was $3. This year, however, is a different story. Because of decreasing sales, preliminary computations at the end of 2016 show that earnings per share will...

Question