# Question: Refer to Table 7 5 on page 182 Assume that because

Refer to Table 7–5 on page 182. Assume that because of unusually bright long-term prospects, analysts determine that Johnson & Johnson’s P/E ratio in 2011 should be 10 percent above the average high J&J P/E ratio for the last 10 years. (Carry your calculation of the P/E ratio two places to the right of the decimal point in this problem.) What would the stock price be based on projected earnings per share of $5.35 (for 2011)?

## Answer to relevant Questions

Refer to problem 15, and assume new circumstances cause the analysts to reduce the anticipated P/E in 2011 to 20 percent below the average low J&J P/E for the last 10 years. Furthermore, projected earnings per share are ...The Bolten Corporation had earnings per share of $2.60 in 2012, and book value per share at the end of 2011 (beginning of 2012) was $13. a. What was the firm’s return on equity (book value) in 2012? b. If the firm pays out ...If D1 = $3.00, Ke = 10 percent, and g = 12 percent, can Formula 7–5 be used to find P0? Explain the reasoning behind your answer. Singular Corp. has the following income statement data: a. Compute the ratio of each of the last four items to sales for 2010 and 2011. b. Based on your calculations, is the company improving or declining in its performance? A company has $200,000 in inventory, which represents 20 percent of current assets. Current assets represent 50 percent of total assets. Total debt represents 30 percent of total assets. What is stockholders’ equity?Post your question