From the following information of two companies. Compar Xy P/E ratio is 10. Company Xz P/E is 4. The sum total of the post tax earnings of the above mentioned companies are dollar 1679897. Assume the sales $3000000 Compute the market value of two companies. Answer:

From the following information of two companies. Compar Xy P/E ratio is 10. Company Xz P/E is 4. The sum total of the post tax earnings of the above mentioned companies are dollar 1679897. Assume the sales $3000000 Compute the market value of two companies. Answer:

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 22BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...

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Question

From the following information of two companies. Company
Xy P/E ratio is 10. Company Xz P/E is 4. The sum total of the
post tax earnings of the above mentioned companies are
dollar 1679897. Assume the sales $3000000 Compute the
market value of two companies.
Answer:

The market price of a share of common stock is
$60. The dividend just paid is $3, and the
expected growth rate is 10%. What is the price
of new common shares?
Answer:

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