Flex Co. just paid total dividends of $975,000 and reported additions to retained earnings of $2,925,000....

Flex Co. just paid total dividends of $975,000 and reported additions to retained earnings of $2,925,000. The company has 675,000 shares of stock outstanding and a benchmark PE of 16.9 times. What stock price would you consider appropriate?

Multiple Choice $73.23 $97.64 $92.76 $87.88 $24.41

Solutions

Expert Solution

Net income =	3900000
975,000+2,925,000

Number of share =	675,000

EPS =	5.78

PE ratio =	16.9

Price =5.78*16.9	97.64

ans = option	$ 97.64

jeff jeffy answered 1 year ago

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