Question

If stock price is $40. Last year’s earning is $4 million. The firm has 2 million...

  1. If stock price is $40. Last year’s earning is $4 million. The firm has 2 million shares outstanding. What is the price-earning ratio? In general, what does it suggest of a firm?
  1. Show the difference between fundamental analysis and technical analysis. Give examples.
  1. Why was Sarbanes-Oxley Act enacted? Give an example of this Act.
  1. What is short selling? How does short selling help a financial market?

  1. What is Leveraged Buyout (LBO)? When is it likely to happen?
  1. How does the industry condition influence the price of a stock in the IPO? Explain in details.

  1. Compare between CAPM and APT.

Luckin Coffee, Inc. (ticker symbol is LK in yahoo finance) very recently misled the market with wrong information and the stock price tanked overnight. Write a report on that using your own thoughts. 5 Points

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Stock price 40
Net Income 4000000
Shares outstanding 2000000
EPS (Net Income / Shares outstanding) 2
P/E = Stock price / EPS 40 / 2 = 20
P/E ratio is valuation ratio. It is calculated by dividing market price by EPS. P/E ratio gives an idea that how much dollars investors are ready to pay for per dollar earnings of company. By comparing P/E ratio with comparable companies P/E one can observe that share price is overvalued or undervalued.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
BAD? Company's stock price is $40?, and it has 6.0 million shares outstanding. You believe that...
BAD? Company's stock price is $40?, and it has 6.0 million shares outstanding. You believe that if you buy the company and replace its? management, its value will increase by 34%. Assume that BAD has a poison pill with a 15% trigger. If? triggered, all target shareholderslong dash—other than the acquirerlong dash—will be able to buy one new share in BAD for each share they own at a 60% discount. Assume that the price remains at $40 while you are...
BAD Company’s stock price is $30, and it has 2 million shares outstanding. You believe you...
BAD Company’s stock price is $30, and it has 2 million shares outstanding. You believe you can increase the company’s value if you buy it and replace the management. Assume that BAD has a poison pill with a 15% trigger. If it is triggered, all BAD’s shareholders—other than the acquirer—will be able to buy one new share in BAD for each share they own at an 80% discount. Assume that the price remains at $30 while you are acquiring your...
QUESTION 1: XYZ Inc. has 10 million shares of common stock outstanding. The current share price...
QUESTION 1: XYZ Inc. has 10 million shares of common stock outstanding. The current share price is $20 per share. The most recent dividend was $1 and the dividend growth rate is 4%. XYZ also has a bond issue outstanding, which is maturing in 15 years, has a face value of $100 million, 7% coupon payable annually, and sells for 83.8786% of the face value. XYZ also has 2,000,000 preferred shares outstanding, which are currently selling for $40 per share...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events that took place at Enron and how the situation could have been dealt with differently to prevent further damage? THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies,...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT