Question
Use the following information to answer this question Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 8,650 Less: Cost of goods sold
Use the following information to answer this question
Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 8,650 Less: Cost of goods sold 7,250 Less: Depreciation 300 Earnings before interest and taxes $ 1,100 Less: Interest paid 70 Taxable Income $ 1,030 Less: Taxes 309 Net income $ 721 Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 140 $ 155 Accounts payable $ 1,160 $ 1,302 Accounts rec. 900 710 Long-term debt 940 1,118 Inventory 1,500 1,520 Common stock $ 3,190 $ 2,890 Total $ 2,540 $ 2,385 Retained earnings 450 725 Net fixed assets 3,200 3,650 Total assets $ 5,740 $ 6,035 Total liab. & equity $ 5,740 $ 6,035 Windswept, Inc. has 250 million shares of stock outstanding. Its price-earnings ratio for 2010 is 15.
What is the market price per share of stock?
a.$28.84
b$27.00
c.$66.00
d.$43.26
e.$43.50
Step 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