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:

Current Account Surplus

A situation where a country's earnings from exports exceeds its spending on imports, leading to net positive income from foreign transactions.

Balance of Trade

The net difference in value between a country's exports and imports over a certain period.

Balance on Capital Account

A national accounting measure that records all transactions for foreign investments and loans going in and out of a country.

Net Transfers

The net amount of money, goods, or services being transferred from one entity to another, after accounting for inflows and outflows.