User Account

All Pages

What will be its stock price 1 year from now

Assignment Help Finance Basics
Reference no: EM131105585

Fontaine Inc. recently reported net income of $2 million. It has 500,000 shares of common stock, which currently trades at $40 a share. Fontaine continues to expand and anticipates that 1 year from now, its net income will be $3.25 million. Over the next year, it also anticipates issuing an additional 150,000 shares of stock so that 1 year from now it will have 650,000 shares of common stock. Assuming Fontaine's price/earnings ratio remains at its current level, what will be its stock price 1 year from now?

Reference no: EM131105585

Questions Cloud

What are the five major categories of ratios : Why are ratios useful? What are the five major categories of ratios? The first part of the case, presented in Chapter 7, discussed the situation that Computron Industries was in after an expansion program.
What is the amount of the payments that tom brokaw : What is the amount of the payments that Tom Brokaw must make at the end of each of 8 years to accumulate a fund of $70,000 by the end of the eighth year, if the fund earns 8% interest, compounded annually?
Calculate those ratios that you think would be useful : Calculate those ratios that you think would be useful in this analysis. b. Construct a DuPont equation and compare the company's ratios to the industry average ratios. c. Do the balance sheet accounts or the income statement figures seem to be primar..
What should be the required initial investment : Rather Corporation wants to withdraw $100,000 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%?
What will be its stock price 1 year from now : Over the next year, it also anticipates issuing an additional 150,000 shares of stock so that 1 year from now it will have 650,000 shares of common stock. Assuming Fontaine's price/earnings ratio remains at its current level, what will be its stock p..
What will be the level of accounts receivable : f this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year.
What payments must walt frazier make to settle the loan : What payments must Walt Frazier make to settle the loan at the same interest rate but with the 6 payments beginning on the day the loan is signed?
How much can its short-term debt : The Petry Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt ..
What is aei''s times-interest-earned (tie) ratio : AEI Incorporated has $5 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 10%, and its return on assets (ROA) is 5%. What is AEI's times-interest-earned (TIE) ratio?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the firms interest expense

Calculate the firm's interest expense, net income and EPS at each proposed capital structure and determine which capital structure maximizes EPS.

  Bonds nominal yield to maturity

What is the current yield on these bonds and  What is the bond's nominal yield to maturity.

  Currently neither ken nor sandra has disability insurance

1. if a shed valued at 13000 in the backyard is also destroyed in the fire what is the maximum amount that the

  Problem regarding the transitive and intransitive

"In light of the evolutionary process, the organ system in the fruit fly, like the organ system in the human, is conserved throughout evolution." Is Webster's dictionary incorrect? Should the dictionary list CONSERVE as both transitive and intransi..

  Process for distribution policy and dividend policy

Discuss all the factors that influence this decision process in question. * From the e-Activity, contrast the differences between a stock dividend and a stock split. Imagine that you are a stockholder in a company.

  You want to buy a house in 4 years and expect to need 25000

you want to buy a house in 4 years and expect to need 25000 for a down payment. if you have 15000 to invest how much

  How cash flow is different from profit or net income why

how is cash flow different from profit or net income? why are sunk costs excluded from the incremental cash flow of a

  What is the maximum amount the firm should pay

Which investment should be considered? (for any credit, show your work). Use a 9.5% discount rate. Hint: A discount rate gives you the clue that you should perform a present value analysis on each investment.

  Current organization or a hypothetical organization

Assume you are evaluating vendors providing cloud-based solutions for your current organization or a hypothetical organization. Complete the following:

  What industries tend to excel during recessions

What industries tend to excel during recessions? Find out how trends in the economy can affect a business's performance and examine how industries are propelled by life cycles.

  Calculate next year ending receivables balance

A firm is planning to lower its ACP by ten days next year. Receivables are currently $15M on credit sales of $120M Credit sales are expected to grow by 20% next year. Calculate next year's ending receivables balance (make calculations using ending..

  Calculate the abnormal rates of return

Calculate the abnormal rates of return for the following stocks during period t (ignore differential systematic risk):

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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