If a companys stock is currently selling for $12 per share and its price earnings ratio is

Question:

If a company€™s stock is currently selling for $12 per share and its price earnings ratio is 6, what are its earnings per share? What does this figure mean?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Entrepreneurial Finance

ISBN: 978-0133140514

6th edition

Authors: Philip J. Adelman; Alan M. Marks

See More Books

Question Posted: Jul 31, 2015 08:58 AM

See More Questions

A $1,000 TIPS (Treasury Inflation-Protected Security) is currently selling for $940 and carries a coupon interest rate of 4 percent. a. If you buy this bond, how much will you receive for your first...
A call option is currently selling for $5. It has a strike price of $70 and six months to maturity. What is the price of a put option with a $70 strike price and six months to maturity? The current...
A call option is currently selling for $3.90. It has a strike price of $45 and five months to maturity. The current stock price is $47, and the risk-free rate is 4 percent. The stock will pay a...
Based on the book values in the balance sheet of the company presented below, answer the following questions: Assets Liabilities and Shareholders Equity Asset (book value) $ 75 Debt $ 25 Equity $ 50...
Suppose that X1 and X2 are i.i.d. random variables and that the p.d.f. of each of them is as follows: Find the p.d.f. of Y = X1 X2. e forx > 0, 0 otherwise. f(x)=
Assume semi-annual payments. A bond has a coupon rate of 4.0%when yields are 4.93%. If the bond has 4years to maturity,what is the price of the bond?
Why does average employee contribution offer a better estimate of the contribution of individuals to an organization than total compensation (wages, incentives, and benefits)?
Drake Paper Company sells on terms of net 30. The firms variable cost ratio is 0.80. a. If annual credit sales are $20 million and its accounts receivable average 15 days overdue, what is Drakes...
Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing their different cost structures:...
Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently two production lines are in place for making bronze and plastic sprinklers. Three types...
Why is the operating return on assets ratio also referred to as the operating return on investment?
Give an example of how financial statements can be used internally by the managers of a company.
A limited company has issued share capital of: 300,000 ordinary shares of $2 each 200,000 6 percent preference shares of $1 each. During the financial year ended 31 December 2014, a dividend of...
why is a sense of direction and ethical values important for a learning / coaching organization.
The QBS process does not require prospective offerors to provide prices in their proposal. How does the owner determine the project price if it s not in the offeror s proposals? Do think the process...
A retail outlet sells a seasonal product for $10 per unit. The cost of the product is 58 per unit. All units not sold during the regular season are sold for half the retail price in an end-of-season...
At what level does selection act when it drives cancer?
Explain all types of financial Risk nd non-financial risk? Discuss pure risk, speculative risk, financial risk and operational risk in insurances. Discuss non-financial risk.
Using the quotations in Exhibit 7.3, note that the June 2019 Mexican peso futures contract has a price of $0.05143 per MXN. You believe the spot price in June will be $0.05795 per MXN. What...
As you rewrite these sentences, replace the cliches and buzzwords with plain language (if you don't recognize any of these terms, you can find definitions online): a. Being a jack-of-all-trades, Dave...
Indicate some of the concerns or cautions that need to be considered when conducting ratio analysis.
You have been retained as a consultant for Ecosphere and tasked with assessing the financial viability of their commercial ventures. What types of financial ratios would you enlist in your report to...
The Salza Technology Corporation successfully increased its "top line" sales from $375,000 in 2009 to $450,000 in 2010. Net income also increased as did the venture's total assets. You have been...
Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follows: July 1 Inventory 106 units @ $28 July 8 Sale 85 units July 15 Purchase 118 units @ $32 July 27...
Materials Costing for a Furniture Company Pull Up a Chair Company manufactures furniture. The company uses a job order cost system. Balances on August 1 from the materials ledger are as follows:...
You are a defense attorney, and your first big case is a multiple murder. You have come to the realization that your client really did break into a couple's home and torture and kill them in the...

If a companys stock is currently selling for $12 per share and its price earnings ratio is

Question:

$12 -32.00 Fr Ian

Step by Step Answer:

This means that the market is willing to pay 1...View the full answer

Entrepreneurial Finance

Students also viewed these Finance questions