The Sleeping Flower Co. has earnings of $1.75 per share. The benchmark PE for the company is
Question:
The Sleeping Flower Co. has earnings of $1.75 per share. The benchmark PE for the company is 18. What stock price would you consider appropriate? What if the benchmark PE were 21?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 68% (19 reviews)
Input area EPS 175 Benchmar...View the full answer
Answered By
Naman raj baid
I completed my graduation from Bits-Pilani In Computer Science.I have worked for one year as a teaching assistant in my college for core computer science courses like Data Structure, Machine Learning, Object Oriented Programming (Java).I am also very good with Data Structures. I have won many coding competitions during my college time. I also have conducted coaching sessions for Competitive programming. I am also very good with Data Structures and algorithms. I also have experience with complete service end to end development. I have written a service in Golang. I have experience with Python, Java, C++ and Golang.
0.00
0 Reviews
10+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
If a stocks earnings per share is $2.00 what will be the dividend per share if the payout ratio is 40%? If the following years earnings per share is $2.10 what will the payout ratio be if the firm...
-
You are trying to estimate a price per share on an IPO of a company involved in environmental waste disposal. The company has a book value per share of $20 and earned $3.50 per share in the most...
-
If you were Lenny, to what degree would you consider the other stakeholders described in this scenario? If you were the president of a football team owned by shareholders in the same situation, to...
-
The stockholders equity section of University Fashions is presented here. University Fashions Balance Sheet (Stockholders Equity Section) ($ in thousands) Stockholders equity: Preferred stock, $50...
-
A wood beam with cross-sectional dimensions 200 mm x 300 mm is reinforced on its sides by steel plates 12 mm thick (see figure). The moduli of elasticity for the steel and wood are Es = 190 GPa and...
-
Refer to the figure and find the volume generated by rotating the given region about the specified line. R 3 about OC y B(1, 1) C(0, 1) R2 y= Vr R3 Rr A(1, 0)
-
Asia represents the universal powerhouse of production but only features partially in Inditexs approach. What made Asia the first worlds supplier of fashion products and a main sourcing spot in the...
-
The stock in Ivory Corporation is owned by Gold Corporation (80%) and Imelda (20%). Gold Corporation purchased its shares in Ivory nine years ago at a cost of $650,000, and Imelda purchased her...
-
Q. Identify four possible differences in the computation of depreciation expense for financial statement purposes and MACRS depreciation. Note: It should be in your own words.
-
Jimmy owns a garden in which he has planted N trees in a row. After a few years, the trees have grown up and now they have different heights. Jimmy pays much attention to the aesthetics of his...
-
In the previous problem, assume that Schenkel uses cumulative voting, and there are four seats in the current election. How much will it cost you to buy a seat now?
-
Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $3 per share and has announced that it will increase the dividend by $5 per share for each of the next five years,...
-
A bag contains 5 coins, 4 of which are fair and 1 that has a head on each side. If a coin is selected from the bag and tossed twice, what is the probability of obtaining 2 heads? Use probability...
-
Give an example of a program that will cause a branch penalty in the three-segment pipeline of Sec. 9-5. Example: Three-Segment Instruction Pipeline A typical set of instructions for a RISC processor...
-
Are Google, Microsoft, and Apple acting ethically? Are they being socially responsible? Eager to benefit from the economic growth and the job creation that foreign direct investments generate, many...
-
On May 1, 2011, Lenny's Sandwich Shop loaned \$20,000 to Joe Lopez for one year at 6 percent interest. Required Answer the following questions: a. What is Lenny's interest income for 2011? b. What is...
-
Tipton Corporations balance sheet indicates that the company has \($300,000\) invested in operating as sets. During 2006, Tipton earned operating income of \($45,000\) on \($600,000\) of sales....
-
Norton Car Wash Co. is considering the purchase of a new facility. It would allow Norton to increase its net income by \($90,000\) per year. Other information about this proposed project follows:...
-
Which graphs, if any, are not trees because they are not connected? Refer to the figure shown. q U e 9 e e g h
-
What is the ideal number of children to have? This question was asked on the Sullivan Statistics Survey I. Draw a dot plot of the variable Children from theSullivanStatsSurveyI data set at...
-
The president of Prof. Andersons university is interested in the proportion of students favoring the new campus bus system. (a) Since there are 13,200 students and the president would like to have a...
-
Consider the following information on a portfolio of three stocks: a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio's expected return? The...
-
You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Given this information, fill in the rest of the following table: Asset Investment Beta Stock A Stock B...
-
Suppose you observe the following situation: a. Calculate the expected return on each stock. b. Assuming the capital asset pricing model holds and Stock A's beta is greater than Stock B's beta by...
-
Problem 12.6A (Algo) Liquidation of a partnership LO P5 Kendra, Cogley, and Mel share income and loss in a 3.21 ratio (in ratio form: Kendra, 3/6: Cogley, 2/6; and Mel, 1/6), The partners have...
-
Melody Property Limited owns a right to use land together with a building from 2000 to 2046, and the carrying amount of the property was $5 million with a revaluation surplus of $2 million at the end...
-
Famas Llamas has a weighted average cost of capital of 9.1 percent. The companys cost of equity is 12.6 percent, and its cost of debt is 7.2 percent. The tax rate is 25 percent. What is the companys...
Study smarter with the SolutionInn App