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Author Question: Pinnacle Financial Management projects that earnings per share for Valley Imports Inc. will increase ... (Read 37 times)

ereecah

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on: Jul 11, 2018
Pinnacle Financial Management projects that earnings per share for Valley Imports Inc. will increase from the current 1.75 per share to 2.00 next year.
 
  If Pinnacle recommends a P/E ratio of 12.5 for Valley Imports, what is the recommended forward looking price for the firm?
  A) 21.88 per share
  B) 25.00 per share
  C) 23.44 per share
  D) 6.25 per share

Question 2

Mark purchased a boat owners package policy. While using his boat, he negligently hit a pier. A person standing on the pier fell and was severely injured.
 
  Which of the boat owners package policy coverages will respond to a lawsuit filed as a result of this negligent act?
  A) physical damage coverage
  B) liability coverage
  C) medical expense coverage
  D) uninsured boaters coverage


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rleezy04

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Reply #1 on: Jul 11, 2018
Answer to Question 1

B
Explanation: B) Price = EPS  multiple = 2.00  12.5 = 25.00.

Answer to Question 2

Answer: B


ereecah

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Reply #2 on: Jul 11, 2018
Thank you


rleezy04

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Reply #3 on: Jul 11, 2018
No problemo


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