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Author Question: The common stock of Rob's Discount Furniture is currently selling at $65.20 a share. The company ... (Read 230 times)

lauraleepop

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Question 1

P/E ratios could rise even as earnings fall if
◦ earnings fall at a faster rate than stock prices.
◦ earnings fall at a slower rate than stock prices.
◦ investors expect lower stock prices to be permanent.
◦ investors expect lower earnings to be permanent.

Question 2

The common stock of Rob's Discount Furniture is currently selling at $65.20 a share. The company adheres to a 60% dividend payout ratio and has a P/E ratio of 19. There are 42,000 shares of stock outstanding. What is the amount of the annual net income for the firm?
◦ $42,338
◦ $36,032
◦ $144,126
◦ $72,064


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Marked as best answer by lauraleepop on Mar 29, 2022

lhn821

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lauraleepop

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Reply 2 on: Mar 29, 2022
Great answer, keep it coming :)


aliotak

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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