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 final answer to 2 decimal places, (e.g.. 32.16)) If the company currently has 30 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

Yesterday’s closing Price = $ 108

Net Income = $ 216

working

Dividend Yield = 2.5%

Dividend = 2.70

Dividend Yield = Annual Dividend / Current Price

0.025 = $ 2.70 / Current Price

Current Price = $ 2.70 / 0.025

                         = $ 108

Current Price = $ 108

P/E Ratio = 15

Price/Earnings per share = 15 ==> $ 108 / Earnings per share = 15

Earnings per share = $ 108/15 = $ 7.20

Total Number of outstanding shares = 30 Million

EPS = Net Income /Total outstanding shares

$ 7.20 = Net Income / 30 Million

Net Income =30 Million* $ 7.20 = $ 216,000,000 or $ 216 Million

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