Howie Co Has a Cash Flow Per Share of $1

question 72

Multiple Choice

Howie Co. has a cash flow per share of $1.65 and a price/cash flow ratio of 20.3. The current EPS is $0.58. If cash flows are expected to grow at 8.6 percent what is the share price in one year?

• A) $39.62
• B) $36.38
• C) $38.57
• D) $37.32
• E) $35.61

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Definitions:

Payroll Tax

Charges implemented on employers or their workforce, typically based on a proportion of the salaries paid to employees.

Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the government as tax.

Richest Households

The segment of the population that possesses the highest net worth or income compared to all other households.

Federal Personal Income Tax

Federal Personal Income Tax is a tax levied by the federal government on the annual income of individuals.