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

  What is the firms total assets turnover?

What is the firm's total assets turnover?

  Explain what are the betas of the three risky assets

Suppose the market portfolio comprised of 4% invested in Asset 1, 76% invested in Asset 2, and 20% invested in Asset 3. What is the expected return of this portfolio and explain what are the betas of the three risky assets

  What are the advantages of click and brick retailers

Discuss the advantages of established click and mortar companies such as walmart over pure play e tailers. conversly, what are the advantages of click and brick retailers as compared with pure play e tailers?

  Share from his employer when the stock price

Jason received 100 NQOs giving him the right to purchase 5 shares of stock for $6 per share from his employer when the stock price was $5 per share. The current share price is $15. Jason will exercise all of the options using a same-day sale.

  Shapland inc has fixed operating costs of 500000 and

shapland inc. has fixed operating costs of 500000 and variable costs of 50 per unit. if it sells the product for 75 per

  The isberg company just paid a dividend of 075 per share

the isberg company just paid a dividend of 0.75 per share and that dividend is expected to grow at a constant rate of

  What is the future value

What is the future value of $5,000 in 10 years at 5%, compounded monthly?

  How are budget deficits financed

What is a budget deficit? How are budget deficits financed? Why do Keynesian's believe that budget deficits will increase aggregate demand?

  What is the value per share of your firm stock

1. Your company has a required rate of return 7%. The company has completed a new project that is expected to grow dividends at a rate of 50% the first year and 25% the following year, after which growth should be at a constant rate of 6%. ..

  If the firm could purchase a press that would provide

1.tax effects of acquisition connors shoe company is contemplating the acquisition of salinas boots a firm that has

  If you require and annual rate of return of 12 what must

suppose you are willing to pay 30 today for a share of stock which you will expect to sell at the end of year one for

  How much would mr smith be willing to pay to buy package

Each tuition payment is due at the end of the year for which it is paid. How much would Mr. Smith be willing to pay today to buy the full four-year package if the interest rate is 10%?

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