Question
Erna Company is expected to pay a dividend of $2.39 one year from today and $2.54 two years from today. The company's sales in two
Erna Company is expected to pay a dividend of $2.39 one year from today and $2.54 two years from today. The company's sales in two years are expected to be $15,400,000. The company has a PS ratio of 1.57 times, and 521,000 shares outstanding. If the required return on the company's stock is 10.3 percent, what is the current stock price?
Multiple Choice
- $42.40
- $4.25
- $5.44
- $38.14
- $44.10
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
