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Cute Camel Woodcraft Company just reported earnings after tax ( also called net income ) of $ 9 , 0 0 0 , 0 0
Cute Camel Woodcraft Company just reported earnings after tax also called net income of $ and a current stock price of
$ per share. The company is forecasting an increase of for its aftertax income next year, but it also expects it will have to
issue new shares of stock raising its shares outstanding from to
If Cute Camel's forecast turns out to be correct and its priceearnings ratio does not change, what does the company's management expect its
stock price to be one year from now? Round any PE ratio calculation to four decimal places.
$ per share
$ per share
$ per share
$ per share
One year later, Cute Camel's shares are trading at $ per share, and the company reports the value of its total common equity as $
Given this information, Cute Camel's markettobook MB ratio is
Is it possible for a company to exhibit a netative EPS and thus a negative PE ratio?
No
Yes
Which of the following statements is true about market value ratios?
High PE ratios could mean that the company has a great deal of uncertainty in its future earnings.
Low PE ratios could mean that the company has a great deal of uncertainty in its future earnings.
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