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

ID: 2781851 • Letter: Y

Question

You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today's newspaper. The closing price for this stock that appeared in yesterday's paper was $_____ (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)). If the company currently has 27 million shares of stock outstanding, the net income for the most recent four quarters was $_____. (Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount. (e.g., 32))

Explanation / Answer

A). Here the dividend yield = 0.3 % = 0.003

Stock dividend = 0.09

Hence by dividend yield formula;

dividend yield = dividend / stock price

0.003 = 0.09/stock price

hence stock price = 30

but here the net change = - 2.9,( reduced by 2.9)

Add back that change to get yesterday's closing price

Note =negetive sign indicates reduction in price. Don't subtract it. We should add back how much it got reduced to get yesterday's closing price.

Hence so the closing stock price yesterday was 30 + 2.9 = 32.9

B) In order to find the net income, we need to calculate Earnings per share. The stock quote shows the P/E ratio for the stock is 17. Here we need to take the present stock price i.e, 30.

P/E = 17 = Stock price / Earnings per share = 30 / Earnings per share

17 = 30 / Earnings per share

Earnings per share = 1.7647

Earnings per share = Net income / Total number of Shares

1.7647 = net income / 27,000,000

Net Income = 47,646,900

Navigate

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

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

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

Question

Explanation / Answer

Related Questions

Navigate