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Helen
25 days ago
13

Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $9,250,000 and a current sto

ck price of $12.00 per share. The company is forecasting an increase of 25% for its after-tax income next year, but it also expects it will have to issue 3,000,000 new shares of stock (raising its shares outstanding from 5,500,000 to 8,500,000). If Green Caterpillar’s forecast turns out to be correct and its price/earnings (P/E) ratio does not change, what does the company’s management expect its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.)
Business
1 answer:
arsen [2.9K]25 days ago
6 0

Answer:

$9.71

Explanation:

The calculations for the share price are outlined below:-

Current EPS = Net Income ÷ Total Common Shares

= $9,250,000 ÷ 5,500,000

= $1.68

Current P/E ratio = Current stock price ÷ Current EPS

= $12 ÷ $1.68

= 7.14

Projected EPS for next year = $9,250,000 × 1.25 ÷ 8,500,000

= $1.36

Forecasted stock price for next year = $1.36 x 7.14

= $9.71

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Trompenaars found that a(n) _____ organizational culture is common in countries such as Turkey, Pakistan, Venezuela, China, Hong
Free_Kalibri [3151]

Answer:

Letter B is the correct option. Family.

Explanation:

Alfons Trompenaars, a prominent Dutch author and consultant in intercultural communication, categorized organizational cultures into four types: family, Eiffel Tower, guided missile, and incubator. Countries like Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore primarily exhibit family culture.

Family culture is characterized by an organizational landscape that prioritizes power dynamics and hierarchy, featuring a charismatic leader regarded as a nurturing family member by employees who believes in the well-being of their team.

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1 month ago
If an undergraduate student was considering getting a tattoo and stopped to ask herself what her parents would think of such beh
soldi70 [3139]

Answer: The right answer is "subjective norm".

Explanation: If a college student contemplating a tattoo pauses to consider her parents' opinions regarding such an action, this thought process would reflect her subjective norm, as it specifically hinges on her parents' potential views about her behavior.

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13 days ago
Read 2 more answers
Carla's business recently suffered an attack that shut down operations. What planning document describes how her business should
Mariulka [3175]

Answer:

An essential business continuity document

Explanation:

The business continuity plan is vital for safeguarding against potential threats that could disrupt operations.

This written document is crucial for small enterprises.

Carla's business continuity plan should encompass:

1. identification of critical business processes required for rapid operational restoration post-incident, including necessary resources.

2. assessment of possible crises that could impact the business, along with strategies to mitigate the risk of said disasters.

As staff have previously received training on their roles during emergencies, they should implement their learning effectively.

For instance, if there's a risk of an attack that could disrupt power supply, Carla should install a backup generator to handle potential outages.

5 0
1 month ago
A contract in which the vendor (seller) agrees to convey the title to the real property after the vendee (buyer) has met certain
arsen [2965]
The title of the agreement is CALIFORNIA SALES CONTRACT AND CIVIL CODE. This agreement is predominantly utilized for acquiring land in California. The stipulations related to its use have made it less appealing for those looking to buy real estate in the state.
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29 days ago
Lorillard Corporation has the following information for April, May, and June 2018: April May June Units produced 12,500 12,500 1
stepan [3001]

Answer:

Ending inventory cost for April is equal to $121,875

Explanation:

Based on the information provided in the question:

Unit production cost       Absorption cost       Variable cost

Direct material                     $15                              $15

Direct labor                            10                                10  

Variable factory overhead    7.5                              7.5  

Fixed factory overhead          5

Total cost                               $37.5                       $32.5  

Finished goods inventory calculation results in 12,500 - 8,750 = 3,750

The cost of the finished goods inventory calculated using absorption costing = 3,750 × $37.50

= $140,625

The finished goods inventory cost using variable costing  = 3,750 × $32.50

= $121,875

6 0
1 month ago
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