Answered step by step
Verified Expert Solution
Question
1 Approved Answer
plsease answer questions 2. A & B please!!! :) Here is some recent financial data for a number of companies. Net Income and of shares
plsease answer questions 2. A & B please!!! :)
Here is some recent financial data for a number of companies. Net Income and of shares outstanding are in thousands. Annual Net Income shares outstanding Stock price per share L Brands (LB) 292,350 $903,000 $89.92 82,390 $100.55 $145,537 PVH (PVH) $105.30 $776,000 Ralph Lauren (RL) 87,950 $1,280,000 $30.47 The Gap (GPS) 434,860 2) As you answer these questions keep in mind that stock value (price) can be thought of as a function of profit, growth opportunities and risk. Your answers should identify which of those 3 factors seems prominent in the determination of the price of a stock. When I ask "how can you tell" l am looking for you to identify a piece of data on which you have based your answer. All of these can be answered in a few lines. a) Look at Ralph Lauren and PVH. What is it that makes Ralph Lauren stock sell at over $105 a share while PVH sells for over $100 a share? Is it profit? Growth potential? Risk? How can you tell? b) Look at L Brands and The Gap s it profit, growth potential or risk that is the main reason why a share of L Brands stock costs about $90 while The Gap stock is worth $30 a share? How can you tellStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started