Use the following information to answer this question. Windswept, Inc. 2010 Inco

Question

Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income $8,950 7,400 315 $1,235 76 $1,159 348 $ 811 Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 $170$185Accounts payable 1,2501,537 1148 $3,250$2,920 730 ash 960 1,560 970 860 Long-term debt 1,550Common stock ccounts rec. Inventory Total Net fixed assets Total assets $2,690$ 2,595 Retained earnings 480 3,260 3,740 $5,950$ 6,335 Total liab. & equity 5,950$ 6,335 Windswept, Inc. has 320 million shares of stock outstanding. Its price-earnings ratio for 2010 is 20. What is the market price per share of stock? O $45.63 O $30.00 O $7719 O $25.34 $50.69

Explanation / Answer

Market price per share:

= PE Ratio×EPS

= 20×($811/320)

= 20×$2.5344

= $50.69

Hence, correct option is $50.69

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