In: Finance
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
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 |