This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Pinnacle Financial Management projects that earnings per share for Valley Imports Inc. will increase ... (Read 83 times)

ereecah

  • Hero Member
  • *****
  • Posts: 530
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

rleezy04

  • Sr. Member
  • ****
  • Posts: 322
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

  • Hero Member
  • *****
  • Posts: 530
Reply #2 on: Jul 11, 2018
Thank you


rleezy04

  • Sr. Member
  • ****
  • Posts: 322
Reply #3 on: Jul 11, 2018
No problemo


« previous next »
 

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes
Impacts of glaciers on landscapes can be seen as (a) a U-shaped valley in Labrador, (b) a drumlin fi Impacts of glaciers on landscapes can be seen as (a) a U-shaped valley in Labrador, (b) a drumlin fi
U.S. oil imports U.S. oil imports
Gate Control Theory, Gate control, Open gate, Closed gate, Pain, Nerve transmission of pain, Pain ma Gate Control Theory, Gate control, Open gate, Closed gate, Pain, Nerve transmission of pain, Pain ma
Gossip and ridicule increase the status insecurity of this time of life. Gossip and ridicule increase the status insecurity of this time of life.
Mountain and valley breezes Mountain and valley breezes
Video: Alzheimer's Disease

For a complete list of videos, visit our video library