Reference no: EM133105062

Question 1 - ABC Company's net income last year was P75,000. The company paid preferred dividends of P12,000 and its average common stockholders' equity was P480,000. What the company's return on common stockholders' equity for the year?

Question 2 - ABC Company's net income last year was P500,000. The company has 150,000 shares of common stock and 30,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The company declared and paid dividends last year of P1.00 per share on the common stock and P0.60 per share on the preferred stock. What the earnings per share of common stock?

Question 3 - ABC Inc. recently reported net income of P1,500,000. The company has 300,000 shares of common stock, and it currently trades at P65 a share. The company continues to expand and anticipates that one year from now its net income will be P2,500,000. Over the next year the company also anticipates issuing an additional 100,000 shares of stock, so that one year from now the company will have 400,000 shares of common stock. Assuming the company's price/earnings ratio remains at its current level, what will be the company's stock price one year from now?