Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Join our platform to connect with experts ready to provide precise answers to your questions in different areas. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.
Sagot :
The market price per share of stock is $45.00
What is the market price per share of stock?
The market price per share of stock for Windswept, incorporated can be determined based on its price-earnings ratio and the earnings per share since the price-earnings means the market price divided by earnings per share
price-earnings ratio= market price per share of stock/earnings per share
price-earnings ratio=15
market price per share of stock=unknown(assume is MP)
earnings per share=net income/stock outstanding
net income=$751 million
stock outstanding=250 million
earnings per share=$751 million/250 million
earnings per share=$3.00
15=MP/$3.00
MP=15*$3.00
MP=market price per share of stock=$45.00
Find out more about price-earnings ratio on:brainly.com/question/28388413
#SPJ1
Full question:
Use the following information to answer this question.
Windswept, Inc. 2021 Income Statement
($ in millions)
Net sales $ 8,750
Cost of goods sold 7,300
Depreciation 305
Earnings before interest and taxes $ 1,145
Interest paid 72
Taxable income $ 1,073
Taxes 322
Net income $ 751
Windswept, Inc. 2016 and 2017 Balance Sheets
($ in millions)
2016 2017
Cash $ 150 $ 165
Accounts payable $ 1,190 $ 1,367
Accounts rec. 920 730
Long-term debt 950 1,128
Inventory 1,520 1,530 Common stock 3,210 2,900
Total $ 2,590 $ 2,425 Retained earnings 460 710
Net fixed assets 3,220 3,680
Total assets $ 5,810 $ 6,105 Total liab. & equity $ 5,810 $ 6,105
Windswept, Inc., has 250 million shares of stock outstanding. Its price-earnings ratio for 2021 is 15. What is the market price per share of stock?
We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.
