Problemplush pilots inc has balance sheet equity of 64, Ask an Expert

Accounting

Problem:

Plush Pilots, Inc., has balance sheet equity of $6.4 million. At the same time, the income statement shows net income of $950,000. The company paid dividends of $485,000 and has 190,000 shares of stock outstanding.

Required:

Question: If the benchmark PE ratio is 16, what is the target stock price in one year?

Note: Please show basic calculation

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173669

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