Jordan Broadcasting Company Solution: Shares Outstanding 8,000,000 a) Earnings p
ID: 2691803 • Letter: J
Question
Jordan Broadcasting Company Solution:Shares Outstanding 8,000,000 a) Earnings per share before stock issue =
Earnings $24,000,000
New Stock Issue 3,000,000
Earnings per share after stock issue =
Price of new shares $40
P/E 23 b)
Earnings per Share =
P/E =
Stock Price =
c)
Jordan Broadcasting Company Solution:
Shares Outstanding 8,000,000 a) Earnings per share before stock issue =
Earnings $24,000,000
New Stock Issue 3,000,000
Earnings per share after stock issue =
Price of new shares $40
P/E 23 b)
Earnings per Share =
P/E =
Stock Price =
c)
Explanation / Answer
a) Earnings per share before stock issue= 24,000,000/8,000,000= 3 Earnings per share after stock issue= 24,000,000/11,000,000= 2.18 b) P/E = 23 New EPS = $(24/11) So Price = $ 23*24/11 = $50.18
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.