Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 02, 2024

The Blooming Flower Co. has earnings of $1.44 per share. a. If the benchmark PE for the company is 13, how much will you pay

The Blooming Flower Co. has earnings of $1.44 per share.

a. If the benchmark PE for the company is 13, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. If the benchmark PE for the company is 16, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

9781119563099

Students also viewed these Finance questions

Question

31. The number of years a radio functions is exponentially distributed with param- eter = 1/8. If Jones buys a used radio, what is the probability that it will be working after an additional 8 years?

Answered: 1 week ago

Question

★★★★★

Draw a class diagram for the cars and owners described in exercise 9 but include subclasses for sports car, sedan, and minivan with appropriate attributes.

Answered: 1 week ago

Question

★★★★★

Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $ 1 0 0 . The stock pays a quarterly dividend of $ 1 . 0 0 and its current price is $ 8 4 . a . What is its nominal...

Answered: 1 week ago

Question

★★★★★

M05 Instructions Download the MO5 _Template.xlsx. You must use this template. Put your Name and the Stevens Pledge in the spaces provided. Part I: Installation Repair Warranty Assurance An internet...

Answered: 1 week ago

Question

★★★★★

[7] Draw the phase diagram of water and indicate the supercritical fluid region. 5 points

Answered: 1 week ago

Question

★★★★★

When performing an integrated audit for a public company subject to PCAOB standards, the audit team identified the following situation: Control: All expenditures are reviewed by AP personnel to...

Answered: 1 week ago

Question

★★★★★

Mr. Webb's class is measuring the length of small objects using a classroom set of rulers. One student's measurements are consistently 1 8 8 1 inch smaller than all of the other students'...

Answered: 1 week ago

Question

★★★★★

While staying at a hotel for a conference, Paulo's supervisor invites him to her room for drinks. When Paulo turns her down, she says he won't be considered for a promotion unless he changes his...

Answered: 1 week ago

Question

★★★★★

At the aquarium, visitors are asked how much they agree with the statement, "I like jellyfish" from 1 (strongly disagree) to 7 (strongly agree). What scale of measurement is being used? O nominal...

Answered: 1 week ago

Previous Question Next Question

The Blooming Flower Co. has earnings of $1.44 per share.

a.	If the benchmark PE for the company is 13, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.	If the benchmark PE for the company is 16, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)