You have found the following stock quote for RJW Enterprises, Inc., in the finan

Question

You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today?s What was the closing price for this stock that appeared in yesterday?s paper? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) If the company currently has 33 million shares of stock outstanding, what was net income for the most recent four quarters? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

Solution :

To calculate Yesterday's closing price:

Yield = Annual dividend / closing price

2.4% = 3.00 / closing price

Closing price = 3.00 / 2.4%

Closing price = $ 125 .

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To calculate net income

P/E ratio = closing price / annual earnings per share ( based on the most recent four quarters)

15 = 125 / annual earnings per share ( based on the most recent four quarters)

annual earnings per share ( based on the most recent four quarters) = 125/15

annual earnings per share ( based on the most recent four quarters) = 8.33

Net income = $ 8.33 X 33,000,000

Net income = $ 275,000,000

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