The Blooming Flower Co. has earnings of $2.14 per share. The benchmark PE for the company from
Question:
The Blooming Flower Co. has earnings of $2.14 per share. The benchmark PE for the company from a comparables analysis 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: 55% (9 reviews)
Using the equation to calculate the price ...View the full answer
Answered By
Ankit Mahajan
I am an electrical engineering graduate from Thapar institute of engineering and technology.
Qualified exams - GATE 2019,2020.
CAT EXAM 2021- 91.4 percentile
SSC EXAMS- 2019,2020,2021
AFCAT EXAM- 2019,2020,2021
I want to share my knowledge with other people so that they can achieve the same.
I have strong hold Mathematics, Electrical engineering and all the subjects related.
Just give me a problem and I will give you the solution of it.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
Students also viewed these Business questions
-
The Blooming Flower Co. has earnings of $3.68 per share. The benchmark PE for the company is 18. What stock price would you consider appropriate? What if the benchmark PE were 21?
-
Blooming Flower Company was started in Year 1 when it acquired $60,000 cash from the issue of common stock. The following data summarize the companys first three years operating activities. Assume...
-
Blooming Flower Company was started in 2016 when it acquired $60,000 cash from the issue of common stock. The following data summarize the companys first three years operating activities. Assume that...
-
Q1- An engineering student is trying to create a new drivetrain system for his bike, consisting of a pully system. Pully A is connected to pully B by a non-slip belt and pully B is rigidly attached...
-
The University Store, Inc. is the major bookseller tor four nearby colleges. An income statement for the first quarter of the year is presented below: On average, a book seller for $40.00. Variable...
-
How many of these keywords can be used in a module-info.java file: closes, export, import, require, and uses? A. None B. One C. Two D. Three E. Four F. Five.
-
Verify that the \(j\)-factor is related to the drag coefficient by the relation \[j_{\mathrm{D}}=\frac{c_{\mathrm{D}}}{2}\] for mass transfer for flow over a flat plate.
-
A 1250-kg wrecking ball is lifted to a height of 12.7 m above its resting point. When the wrecking ball is released, it swings toward an abandoned building and makes an indentation of 43.7 cm in the...
-
Dave borrowed $600 on January 1, 2022. The bank charged him a $8.00 service charge, and interest was $47.20. If Dave paid the $600 in 12 equal monthly payments, what was the APR? Note: Do not round...
-
Your clients, Jim and Pam Halpert, both age 42, are married and live in Scranton, Pennsylvania. You are the tax accountant for the Halpert's, and they have requested that you complete their 2021...
-
In the previous problem, assume that the company uses cumulative voting and there are four seats in the current election. How much will it cost you to buy a seat now?
-
Universal Laser, Inc., just paid a dividend of $2.73 on its stock. The growth rate in dividends is expected to be a constant 4 percent per year indefinitely. Investors require a return of 15 percent...
-
Repeat P12.4 when the topology is to be used is in the form of a triangular topology and sensing area overlap is 10% smaller than the mesh topology.
-
Explain what an intervention is and how it fits into the organizational development process. What are the key considerations when deciding on an intervention? Describe how OD interventions should be...
-
What is the time and space complexity of this code? int A[ n ]; for (i = n / 2; i
-
How does the process of gastrulation transform the single-layered blastula into a multi-layered gastrula, and what are the key cellular movements involved?
-
BMP Corp is contemplating the acquisition of a plant which will cost the company RM150 million. The projected Earnings Before Interest and Tax (EBIT) stand at RM20 million. Two financial plans are...
-
Candyland has a net income of $700,000, depreciation expense of $200,000, and capital expenditures of $150,000. Candyland has an expected constant growth rate in FCF of 2.1%, and an average tax rate...
-
Why cant the elements of a compound be separated from one another by physical means?
-
Consider the sections of two circuits illustrated above. Select True or False for all statements.After connecting a and b to a battery, the voltage across R1 always equals the voltage across R2.Rcd...
-
Using Excel to find the marginal tax rate can be accomplished using the VLOOKUP function. However, calculating the total tax bill is a little more difficult. Below we have shown a copy of the IRS tax...
-
Liquidity True or false: All assets are liquid at some price. Explain.
-
Gordon Driving School's 2014 balance sheet showed net fixed assets of $1.32 million, and the 2015 balance sheet showed net fixed assets of $1.51 million. The company's 2015 income statement showed a...
-
You invest 50% of your financial assets in the Vanguard Total Stock Market ETF (VTI) and 50% in the Vanguard Total Bond Market ETF (BND). VTI has an expected return of 8% and a standard deviation of...
-
You have found the car you would like to purchase. The negotiated price = $57,500 and you are taking out a loan with a 7.5% APR compounded monthly for 6 years. What are your monthly payments? Car...
-
Suppose a male member currently aged 35, entered service at his age of 25, has a current salary of $75, 000 and total past salary of $650, 000. Assume that salaries increase at the beginning of each...
Study smarter with the SolutionInn App