Question: The price - earnings ( P / E ) ratio for ABC is measured at 2 0 . The firm has 5 0 0 ,

The price-earnings (P/E) ratio for ABC is measured at 20. The firm has 500,000 shares trading on the open market. If the firm has a reported a net income of $2 million, what is the market capitalization of the firms equity? (choose only one)
The price-earnings (P/E) ratio for ABC is measured at 20. The firm has 500,000 shares trading on the open market. If the firm has a reported a net income of $2 million, what is the market capitalization of the firms equity? (choose only one)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Details Company A Company B Share price R60 R90 Number of ordinary shares issued 10 000 000 10 000 000 Market capitalisation 600 000 000 900 000 000 Annual earnings R90 000 000 R120 000 000 Earnings...

Q:

Analyse the information given in the table below and answer the questions below: Details Company A Company B Share price R60 R90 Number of ordinary shares issued 10 000 000 10 000 000 Market...

Q:

Analyse the information given in the table below and answer the questions below: Details Company A Company B Share price R60 R90 Number of ordinary shares issued 10 000 000 10 000 000 Market...

Q:

Alpha Biogenetics was founded 13 years ago by Steve Menger, PhD, M.D. At the time, the company consisted of little more than a one-room laboratory, Dr. Menger, and a lab assistant. However, Dr....

Q:

Alpha Biogenetics was founded in 2002 by Steve Menger, PhD, M.D. At the time, the company consisted of little more than a one-room laboratory, Dr. Menger, and a lab assistant. However, Dr. Menger's...

Q:

P/E Price Earnings Ratio The Price / Earnings Ratio is pretty much what the name says. The price of one share of stock is a multiple of the earnings per share of stock. In reference to a few Dow Blue...

Q:

The company has planned an aggressive sales growth rate of 25% for the next year. a) construct the firms pro-forma income statement for the next year fiscal year of 2023? b) the firms balance sheet...

Q:

QUESTION 1 Maximum Limited is a listed company which your company is considering acquiring. In considering the acquisition, you have been asked to undertake various valuations and analyses of the...

Q:

QUESTION 1 Maximum Limited is a listed company which your company is considering acquiring. In considering the acquisition, you have been asked to undertake various valuations and analyses of the...

Q:

What is the: Gross Margin Profit? Net Profit margin? Total assets turnover ratio? Fixed asset turnover ratio? Current ratio? Cash ratio? Time interest ratio? Price / Earnings ( P /E )? Consolideted...

Q:

Katharine Johnson is the owner of Best Bikes, a company that produces high-quality cross-country bicycles. Best Bikes participates in a supply chain that consists of suppliers, manufacturers,...

Q:

You have carefully examined your budget and determined that you can manage to set aside $250 per year. So you set up an annuity due of $250 annually at 7% annual interest. How much will you have...

Q:

25. How does an assurance-type warranty differ from a service-type warranty?

Q:

CT Corp Comprehensive Question Canadian Tire Corporation, Limited ( Canadian Tire ) is a family of companies that includes a retail segment and a financial services division, among others. The retail...

Q:

=+ 7. The Social Security system provides income for people over age 65. If a recipient of Social Security decides to work and earn some income,

Q:

=+ Harry: We should examine whether our companys productivitygallons of potion per workerwould rise or fall.

Q:

=+ Who do you think is right? Why?