Penguin, Incorporated, has balance sheet equity of $5.8 million. At the same time, the income statement...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Penguin, Incorporated, has balance sheet equity of $5.8 million. At the same time, the income statement shows net income of $864,200. The company paid dividends of $466,668 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 22, what is the target stock price in one year? Assume the firm will grow at the sustainable growth rate. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target stock price Penguin, Incorporated, has balance sheet equity of $5.8 million. At the same time, the income statement shows net income of $864,200. The company paid dividends of $466,668 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 22, what is the target stock price in one year? Assume the firm will grow at the sustainable growth rate. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target stock price
Expert Answer:
Answer rating: 100% (QA)
To calculate the target stock price in one year using ... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date:
Students also viewed these finance questions
-
Florence Lighting Inc. has to raise some cash using debt financing. The board of directors is discussing what terms and conditions would be appropriate for this new debt issue. They need some...
-
Consider the general linear model y = XB+E (where as usual y is an n x 1 vector of responses, X is an n xp design matrix and is a vector of zero mean errors uncorrelated with variance o). The...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
What is the future value at the end of the 20th semester of an annuity due with 20 semiannual payments of $500 each, evaluated at an annual interest rate of 10%?
-
Metal Foundry in Youngstown, Ohio, uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the...
-
An M-bit thermometer code for the number k consists of k 1s in the least significant bit positions and M k 0s in all the more significant bit positions. A binary-to-thermometer code converter has N...
-
Using MATLAB function ode23, solve the differential equation \(5 \ddot{x}+4 \dot{x}+3 x=6 \sin t\) with \(x(0)=\dot{x}(0)=0\).
-
Mike is searching for a stock to include in his current stock portfolio. He is interested in Hi-Tech Inc.; he has been impressed with the companys computer products and believes Hi-Tech is an...
-
Read the following regarding 2 different property management companies: All R Welcome Realty owns 500 single family rental homes. Prospective tenants are encouraged to apply in-person, online, or by...
-
Figure 2 shows the support structure for a suspended apparatus in a laboratory. The apparatus is hung from the 1/4" A36 plate that is welded to the 3/8" plate using E70XX electrodes. Assuming that...
-
In labour law and arbitration, what does the term jurisprudence refer to? Past decisions Legal awards Arbitration awards Prima facie cases?
-
Include all the details and how to solve Solving for i in an Annuity -10,500 2 Present Value Future Value Annual Payment 5 Number of Years Annual Rate 0 1,500 10 Instruction: Suppose that you are...
-
21. The document necessary to file to form an LLC is called Corporation it's called_ a. Articles of Incorporation, Articles of Corporate Formation b. Articles of Organization, Articles of...
-
Galaxy Inc. reported net income for accounting purposes of $1,130,000. In calculating this amount, the following items were deducted: 1- Income tax expense 2- Interest expense (Includes $7,000 of...
-
A horizontal bar (shown) is bolted to a vertical member (not shown) with four SAE Grade 8 Steel bolts, and is subjected to a static set of forces as shown. The bolts in the upper row have a diameter...
-
Referring to the right illustration, a 500-ft long curve passes under a bridge at station 82+45. Estimate the following: The elevation of point P on the curve? (1 pt) The slope of tangent to the...
-
What justifies Boeing 747 freighters (payload capacity of 148 tons) flying in and out of Alabama on a regular schedule? Which airport do these freighters use? Why was this airport chosen?
-
Suppose the S&P 500 futures price is 1000, = 30%, r = 5%, = 5%, T = 1, and n = 3. a. What are the prices of European calls and puts for K = $1000? Why do you find the prices to be equal? b. What...
-
A put option and a call option with an exercise price of $65 and three months to expiration sell for $5.27 and $1.04, respectively. If the risk-free rate is 3.1 percent per year, compounded...
-
Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. The...
-
In each of the following cases, calculate the accounting break-even and the cash break even points. Ignore any tax effects in calculating the cash break-even. Unit Price Unit Variable Cost Fixed...
-
One of the models used for predicting the severity of head injury is shown in Fig. 5.68 where \(f(t)\) denotes the force of blow to the head, \(m_{1}\) is the mass of that part of the head which lies...
-
Write the equations of motion of a multidegree-of-freedom system in matrix form using a. the flexibility matrix, and b. the stiffness matrix.
-
What is a generalized mass matrix?
Study smarter with the SolutionInn App