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A Company Releases the Following Information

question 45

Essay

A company releases the following information:
Number of shares (in thousands) = 7500
Dividend = $0.12
Dividend yield = 0.7%
Profit (in thousands) = $1500
a.Calculate the share price
b.Calculate the market value of the firm (the total value of the firm's stock)
c.Calculate Earnings per share and the P/E ratio
d.Is this company expensive relative to its earnings?


Definitions:

Packaging

All of the activities of designing and producing the container for a product.

Brand-Loyal Customers

Individuals who consistently purchase the same brand's products or services due to satisfaction, perceived value, or emotional connection.

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing behaviors.

Co-Branding

A strategy in which two or more companies issue a single product in an effort to capitalize on the equity of each company’s brand.

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