A Company Releases the Following Information

question 94

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?

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Definitions:

Finance

The management of large sums of money, especially by governments or large companies, encompassing activities such as lending, investing, and budgeting.

Administrative Expense

Costs related to the general operation of a company, which may include salaries of executive staff, office supplies, and utility expenses not directly tied to production.

Period Cost

Costs that are expensed in the period in which they are incurred and are not directly tied to production activity, such as selling, administrative, and general expenses.

Marketing

The process and techniques used by organizations to promote and sell their products or services, including market research and advertising.