You have found the following stock quote for RJW Enterprises, Inc., in the finan

Question

You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today’s newspaper. 52-WEEK YLD VOL NET HI LO STOCK (DIV) % PE 100s CLOSE CHG 72.78 53.67 RJW 1.30 2.0 15 17,902 ?? .38

What was the closing price for this stock that appeared in yesterday’s paper? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Yesterday’s closing price $ If the company currently has 16 million shares of stock outstanding, what was net income for the most recent four quarters? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Explanation / Answer

Dividend yield = Dividend / stock price

0.02 = 1.30 / Stock price

Current market stock price = 1.30 / 0.02 = $ 65

The Net change of the stock reflects that the stock decreased by 0.38, therefore, the closing price of yesterday's stock price = 65 + 0.38 = $ 65.38

Conclusion:- The closing price for this stock that appeared in yesterday’s paper = $ 65.38

Calculation of Net income

First we will find out Net income.

Earnings per share = Market price per share / PE ratio

   = 65 / 15

= $ 4.33 Per Share

Earnings per share = Net income / Number of shares

   4.33 = Net income / 16000000

   Net income = $ 69333333.33 (approx)

Conclusion:- Net income for most recent quarter if company currently has 16 Million shares outstanding will be $ 69333333.33 (approx).

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