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 newspaper.

What was the closing price for this stock that appeared in yesterday’s paper? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

If the company currently has 20 million shares of stock outstanding, what was net income for the most recent four quarters? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today’s newspaper.

Explanation / Answer

1) In order to calculate the closing price, we will use dividend yield and dividend.

Dividend yield = Dividend Paid/Price of Share

Price of Share = 1.70/2% = $85 --> Answer

2) P/E Ratio = 15

Price per share/ Earnings per Share = 15

Earnings per Share (EPS) = 85/15 = $5.67

Net Income = Number of Shares Outstanding * EPS = 20 mil * 85/15 = $113,333,333.33

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