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finance help? Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $9,000,000, and a current stock price of $25.75
finance help?
Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $9,000,000, and a current stock price of $25.75 per share. The company is forecasting an increase of 25% for its after-tax income next year, but it also expects it will have to issue 2,500,000 new shares of stock (raising its shares outstanding from 5,500,000 to 8,000,000) If Cold Goose's forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does the company's management expect its stock price to be one year from now? (Note: Round Intermediate calculations to four decimal places. Round the expected stock price to two decimal places.) $22.13 per share $26 per share $16.60 per share O $27.66 per share One year later, Cold Goose's shares are trading at $49.60 per share, and the company reports the value of its total common equity as $35,408,000, Given this information, Cold Goose's market-to-book (M/B) ratio hs (Note: Do not round Intermediate calculations) Can a company's shores exhibit a negative P/E ratio? No Yes Which of the following statements is true about market value ratios? Low P/E ratios could mean that the company has a great deal of uncertainty in its future earnings High P/E ratios could mean that the company has a great deal of uncertainty in its future carings Step by Step Solution
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