The Dahlia Flower Company has earnings of $3.64 per share. The benchmark PE for the company is

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

Question:

The Dahlia Flower Company has earnings of $3.64 per share. The benchmark PE for the company is 18.

a.	What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.	What if the benchmark PE was 21? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Related Book For answer-question

answer-question

Fundamentals Of Corporate Finance

Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

See More Books

Posted Date: Mar 24, 2022 03:05 AM

See More Questions

Solve the equation 3 2x = 1000, giving your answer to 2 decimal places.
Do not round intermediate calculation; however for display purposes report intermediate steps rounded to four significant figures, Give your final answer(s) so four significant figures. The small...
Perform the indicated operation and reduce your answer to lowest terms. 4/25 - 9/100 - 7/40
Consider a random walk consisting of equi-probable p = q = 1/2 steps in left or right directions. However the step length at ith step is given by e-, i = 1,2,3..... N, with > 0 a constant. Calculate...
Why are providing liquidity and preserving principal the primary concerns in choosing short-term in-vestments? What guidelines should be included in a short- term investment policy?
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a...
A large MNE in the cookware industry was having difficulties maintaining its market share due to a number of mergers among other competing firms in the industry. The MNE, with corporate headquarters...
Waterworks, Inc. makes plastic water bottles that are used by various beverage makers. Demand for bottles was so high during the year that the company made 255,000 bottles, 15,000 more than budgeted....
Manchester Company sells equipment on June 1 of the current year for $83,400 cash. Manchester incurred $480 of removal and selling costs on disposal. The equipment cost $150,000 when it was purchased...
The Picking, Packing, and Shipping process uses 4 different teams: Picking team - gets items from the shelves and sends to Packing Group A and Packing Group B Packing Group A - packs items from the...
Why is consumption so much more stable over the business cycle than investment? In formulating your answer, discuss household behavior as well as business behavior.
Create a 3 sentence conclusion for the following statement. Title: An In-depth Analysis of Securities Fraud: Prevalence, Impact, and Mitigation Strategies Securities fraud, a deceptive practice in...
You buy a guitar for $2,750. You pay $250 down and the store finances the remainder with 36 monthly payments of $111.40. Calculate your APR.
The Market Values Kia Corps Preferred Stock At $60 Per Share It Pays An Annual Dividend Of $12 Per Share. What Is Kias Cost Of Preferred Stock For Purposes Of WACC Of Kia? A. 16.67% B. 2.40% C. 1.67%...
SCI producer of chips Wing chips wants to perform an ABC analysis of its 11 main Suppliers. The information available is the following: What is the result of the ABC analysis? What proposals would...
Hanson Hardware, Inc. offers terms of 1/10, net 30. Assume that a year has 360 days, as is used in our WCM textbook. What annual opportunity cost rate is realized when a customer takes the 1%...
What kind of rays are X-rays?
Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 3.20 Profit margin = 5.2% Equity multiplier = .95 Payout ratio = 35%
What is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought an annuity with 13 annual payments of $10,000 per year at a discount rate of 10...
Your neighbor goes to the post office once a month and picks up two checks, one for $8,450 and one for $4,200. The larger check takes four days to clear after it is deposited; the smaller one takes...
E = 0.04. Estimate the minimum sample size needed to achieve the given margin of error.
Repeat Exercise 17 assuming that the sample size is doubled to 10,000. Given that the large cost and effort of conducting the Nielsen survey would be doubled, does this increase in sample size appear...
Figure 9 shows a histogram for a random sample of n = 264 women (drawn from the same NHANES III study used for the sample of men in Figure 6). The mean of these data is x = 59.6 grams and the...