What does management expect its stock price to be one year

Assignment Help Operation Management
Reference no: EM131117677

Blue Dog Manufacturing Corp. just reported a net income of $11,000,000, and its current stock price is $23.00 per share. Blue Dog is forecasting an increase of 25% for its net income next year, but it also expects it will have to issue 2,100,000 new shares of stock (raising its shares outstanding from 5,500,000 shares to 7,600,000 shares). If Blue Dog’s forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does management expect its stock price to be one year from now? (Hint: If you choose to compute the firm’s price/earnings ratio, round its value to four decimal places.)

Reference no: EM131117677

Questions Cloud

When would a u.s. firm consider purchasing a call option : When would a U.S. firm consider purchasing a call option on euros for hedging? When would a U.S. firm consider purchasing a put option on euros for hedging?
Question regarding the financial projection : Give some background information on New York Times? Discuss briefly performance data 2015 of New York times. Discuss briefly the financial projection 2015 of New York Times.
A company profit-sharing plan : Of 500 employees, 200 participate in a company's profit-sharing plan (P), 400 have major-medical insurance coverage (M), and 200 employees participate in both programs. Construct a Venn diagram to portray the events designated P and M.
Calculate the lower of cost or market : Then write a memo to Greg explaining what designated market value is as well as how it is computed. Use your calculations to aid in your explanation.
What does management expect its stock price to be one year : Blue Dog Manufacturing Corp. just reported a net income of $11,000,000, and its current stock price is $23.00 per share. Blue Dog is forecasting an increase of 25% for its net income next year, but it also expects it will have to issue 2,100,000 new ..
How can a forward contract backfire : How can a forward contract backfire?
Compute the present value of an annuity : Compute the present value of an annuity of $ 750 per year for 19 years, given a discount rate of 10 percent per annum. Assume that the first cash flow will occur one year from today
The accounting break-even quantity : A project has the following estimated data: price = $50 per unit; variable costs = $33 per unit; fixed costs = $22,000; required return = 10 percent; initial investment = $21,000; life = three years. Ignoring the effect of taxes, what is the accou..
Compute the forward discount or premium for the mexican peso : Compute the forward discount or premium for the Mexican peso whose 90-day forward rate is $.102 and spot rate is $.10. State whether your answer is a discount or premium.

Reviews

Write a Review

Operation Management Questions & Answers

  Bona fide occupational qualification

According to the Supreme Court, which of the following cannot be the basis of a “Bona Fide Occupational Qualification” or “BFOQ”? ___________

  How safety management address fatigue issues

Fatigue is a major safety concern in the aviation industry. How does safety management address fatigue issues yet accomplish the job without incurring more costs in the company.

  Which of the following factors would you recommend

Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Explain your reasoning.

  How should bargaining range be used in negotiations

How should bargaining range be used in negotiations? Be sure to include a definition of the bargaining range and an explanation of the major components of the bargaining range.

  What do the authors mean by political polarization

What do the authors mean by political polarization? Is America a country that is deeply politically polarized? What does Rauch say on this issue and what does Wilson say? Which author do you agree with most, Rauch or Wilson and why?

  Creating graph illustrate the crossover points

Stan Fawcett's company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit with a minimum order of 3000 units.

  Formulate the problems objective function

Bob’s Claymart has enough clay to make 24 small vases or six large vases. He has only enough of a special glazing compound to glaze 16 of the small vases or eight of the large vases. Formulate the problem’s objective function, constraints, and solve ..

  Contingency plans for identified risks

Implementation plan, objectives, functional tactics, action items, milestones, and a deadline tasks and task ownership, resource allocation. Any required organizational change management strategies that would enhance successful implementation. Key..

  Formulate LP to meet the demand and mileage requirements

During the next two months, General Cars must meet (on time) the following dema nd for trucks and cars: month 1 – 400 trucks, 800 cars; month 2 – 300 trucks, 300 cars. During each month, at most 1000 vehicles can be produced. Each truck uses 2 tons o..

  Why the project manager will not only need to communicate

Effective communication is more than something that the project manager must schedule. It is more like a means of doing business. The project manager will not only need to communicate with his or her staff

  How change initiative creates conditions of high efficiency

Evaluate how a change initiative creates the conditions of high efficiency for an organization through clarity and focus. What are the benefits of clarity and focus in change initiatives?

  How large order for special plastic-lined military uniforms

Contract price is $200 per uniform. Because of urgent need, BBBC is authorized to use around--clock production, 6 days per week. When each of 2 shifts works 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd