Question

Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,950 Cost of goods sold 7,900 Depreciation 365 Earnings before interest and taxes $ 1,685 Interest paid 98 Taxable income $ 1,587 Taxes 476 Net income $ 1,111 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 270 $ 290 Accounts payable $ 1,540 $ 1,812 Accounts rec. 1,090 990 Long-term debt 1,060 1,248 Inventory 1,760 1,650 Common stock 3,340 3,020 Total $ 3,120 $ 2,930 Retained earnings 640 890 Net fixed assets 3,460 4,040 Total assets $ 6,580 $ 6,970 Total liab. & equity $ 6,580 $ 6,970 Windswept, Inc., has 540 million shares of stock outstanding. Its price–earnings ratio for 2017 is 15. What is the market price per share of stock?

Answer 1

What is the market price per share of stock?

Market Price 2017 30,86

Step-by-step explanation:

Income Statement 2017

Sales revenue $ 9,950

Cost of goods sold -$ 7,900

Depreciation -$ 0,365

Income from Operations $ 1,685

Interest expenses -$ 0,098

Income before income taxes $ 1,587

Income taxe expenses -$ 0,476

NET INCOME $ 1,111

Assets 2016 2017

Cash 0,270 0,290

Accounts Receivable 1,090 0,990

Inventory 1,760 1,650

Property and Equipment 3,460 4,040

TOTAL ASSETS 6,580 6,970

Accounts Payable 1,540 1,812

Long Term Loan 1,060 1,248

TOTAL LIABILITIES 2,600 3,060

Common Stock 3,340 3,020

Retained Earnings 0,640 0,890

TOTAL EQUITY 3,980 3,910

TOTAL EQUITY + LIABILITIES 6,580 6,970

Shares of stock outstanding 0,540

Price–Earnings Ratio 2017 15

Earnings/Share Ratio 2017 2,06

Market Price Ratio 2017 30,86