Ferrell Inc. recently reported net income of $6 million. It has 230,000 shares of common stock,...
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Ferrell Inc. recently reported net income of $6 million. It has 230,000 shares of common stock, which currently trades at $57 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $10.5 million. Over the next year, it also anticipates issuing an additional 34,500 shares of stock so that 1 year from now it will have 264,500 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent. $ Ferrell Inc. recently reported net income of $6 million. It has 230,000 shares of common stock, which currently trades at $57 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $10.5 million. Over the next year, it also anticipates issuing an additional 34,500 shares of stock so that 1 year from now it will have 264,500 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent. $
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Related Book For
Basic Marketing Research
ISBN: 978-1133188544
8th edition
Authors: Tom J. Brown, Tracy A. Suter, Gilbert A. Churchill
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