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Nadusha1986 [10]
2 years ago
13

Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $9,250,000 and a current sto

ck price of $12.00 per share. The company is forecasting an increase of 25% for its after-tax income next year, but it also expects it will have to issue 3,000,000 new shares of stock (raising its shares outstanding from 5,500,000 to 8,500,000). If Green Caterpillar’s forecast turns out to be correct and its price/earnings (P/E) ratio does not change, what does the company’s management expect its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.)
Business
1 answer:
lana66690 [7]2 years ago
6 0

Answer:

$9.71

Explanation:

The computation of stock price is shown below:-

Current EPS = Net Income ÷ Number of Common Shares Outstanding

= $9,250,000 ÷ 5,500,000

= $1.68

Current P/E ratio = Current stock price ÷ Current EPS

= $12 ÷ $1.68

= 7.14

Next year's EPS = $9,250,000 × 1.25 ÷ 8,500,000

= $1.36

Next year's stock price = $ 1.36 x 7.14

= $9.71

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zimovet [89]

International Trade.

When a company sells its product over the US border into another country they are participating in International Trade.

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2 years ago
The human resource (HR) department of Wardund, an event management company, sent emails to all the employees of the firm, inviti
Marysya12 [62]

Answer:

d. internal recruitment

Explanation:

Internal recruitment is a human resources strategy that seeks to fill vacant job positions from the existing workforce. In internal recruitment, existing employees are given priority whenever a senior position becomes available. The business will usually request qualified and willing employees to apply for the job. The successful applicant will then be promoted to a new role.

Internal recruitment may also involve employees moving within the same level but of different roles.   Advantages of internal recruitment include.

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7 0
2 years ago
"Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer
sweet-ann [11.9K]

Answer:

Explanation:

a) since MR=MC, then 15-2Q=3+Q. So, the monopolist produce Q=4

price P=15-Q=10-4=6

profit=6*3-TC=18-(3+4+0.5*4^2)=3

b)since the P=6=6, domestic production will stay the same. The domestic consumption will stay the same. For Wilknam, it will import soccer balls.

c)yes, it holds that Wiknam will be an importer. Because the price for domestic production is 6 which is same as the world price 6.

d)Since the price within country is the same with price out of country, and also, MC=3+Q=7>6, Wiknam will import soccer balls. The monopolist market will become a competitive market.Even though the price won't change,the product will be of high quality and so on. The market will become more equilibrium.

7 0
2 years ago
Bento, Inc. had 500,000 shares of common stock outstanding before a stock split occurred, and 1,500,000 shares outstanding after
RoseWind [281]

Answer:

a) 3-for-1

Explanation:

No of shares before stock split = 500000

No of shares after stock split = 1500000

Ratio in which stock was split

= 1500000 / 500000

= 3/1

3-for-1 .

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2 years ago
In the month of May, Kachik Manufacturing had the following overhead costs. 1. Property taxes, $19,200 ($9,200 for offices, $10,
bija089 [108]

Answer:

debit for 50,779

Explanation:

the actual overhead will be debited which is composed by the actual cost associate with the production department which aren't direct materials or labor.

property taxes     10,000

injury insurance     8,400

building insurance 3,820

utilities                     1,306

equipment dep      12,680

building dep           14,573

 actual overhead   50,779

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2 years ago
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