Last year, Rec Room Sports reported earnings per share of $ 8.50 when its stock price was $ 212.50. This year, its earnings increased by 20 percent. If the P/E ratio remains constant, what is likely to be the price of the stock? Explain.
Answer to relevant QuestionsOn January 2, Daniel Harrison contributed $ 20,000 to start his business. At the end of the year, the business had generated $ 30,000 in sales revenues, incurred $ 18,000 in operating expenses, and distributed $ 5,000 for ...Refer to M11-4. Assume the issued stock has no par value. Analyze the accounting equation effects and record the journal entry for the issuance of the no-par value stock at $ 50. Do the effects on total assets, total ...On December 31, the stockholders’ equity section of the balance sheet of R & B Corporation reflected the following: Common stock (par $10; authorized 60,000 shares, outstanding 25,000 shares).. $250,000 Additional paid-in ...Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $ 1 par value. During its first year, the following selected transactions were completed: a. Issued 6,000 shares of common stock for ...Activision Blizzard, Inc., reported the following in the notes to its financial statements. Stock Split — In July, the Board of Directors approved a two-for-one split of our outstanding common shares effected in the form ...
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