Purchase Solution

Earnings multiplier model to calculate expected price

Not what you're looking for?

Ask Custom Question

You are provided the following information about Javier Corporation. Sales for the year 2004 were $500,000: the Net Profit Margin (NPM) was 15%. Analysts project sales to grow by 12% next year (that is 2005).However because of more competition, the NPM is expected to decline by 10% for the year 2004. The expected P/E multiple for the year 2005 is 22. The total number of shares outstanding is 20,000.

Use the earnings multiplier model to calculate the expexted price for Javier Corporation in the year 2005.

Purchase this Solution

Solution Summary

Earnings multiplier models to calculates the expected price is examined.

Purchase this Solution

Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Basics of corporate finance

These questions will test you on your knowledge of finance.