Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $9,000,000...

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Cold Goose Metal Works Inc. just reported earnings after tax(also called net income) of $9,000,000 and a current stock price of$34.00 per share. The company is forecasting an increase of 25% forits after-tax income next year, but it also expects it will have toissue 2,500,000 new shares of stock (raising its shares outstandingfrom 5,500,000 to 8,000,000).
If Cold Goose’s forecast turns out to be correct and itsprice/earnings (P/E) ratio does not change, what does the company’smanagement expect its stock price to be one year from now? (Roundany P/E ratio calculation to four decimal places.)
One year later, Cold Goose’s shares are trading at $48.36 pershare, and the company reports the value of its total common equityas $46,768,000. Given this information, Cold Goose’s market-to-book(M/B) ratio is _____?
Can a company’s shares exhibit a negative P/E ratio?
Which of the following statements is true about market valueratios?
1. Low P/E ratios could mean that the company has a great dealof uncertainty in its future earnings.
2. High P/E ratios could mean that the company has a great dealof uncertainty in its future earnings.

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aExpected stock price one year from now Current Year EPS Net Income Number of shares outstanding 9000000 5500000 Shares outstanding 16364 per share PriceEarnings Ratio Market Price per share EPS 3400 per share 16364 per share 207773 See Answer

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Cold Goose Metal Works Inc. just reported earnings after tax(also called net income) of $9,000,000 and a current stock price of$34.00 per share. The company is forecasting an increase of 25% forits after-tax income next year, but it also expects it will have toissue 2,500,000 new shares of stock (raising its shares outstandingfrom 5,500,000 to 8,000,000).If Cold Goose’s forecast turns out to be correct and itsprice/earnings (P/E) ratio does not change, what does the company’smanagement expect its stock price to be one year from now? (Roundany P/E ratio calculation to four decimal places.)One year later, Cold Goose’s shares are trading at $48.36 pershare, and the company reports the value of its total common equityas $46,768,000. Given this information, Cold Goose’s market-to-book(M/B) ratio is _____?Can a company’s shares exhibit a negative P/E ratio?Which of the following statements is true about market valueratios?1. Low P/E ratios could mean that the company has a great dealof uncertainty in its future earnings.2. High P/E ratios could mean that the company has a great dealof uncertainty in its future earnings.