Forecast of the income statement and stock price
Not what you're looking for?
(See attached file for full problem description).
1. You manufacture hunting pack systems in China for 80 dollars each, including shipping. The manufacturing costs only include variable costs. You sell these packs to retailers for 200 dollars each. In the current year you will sell 100,000 packs. Your fixed costs including such items as insurance, marketing, travel, shows, office supplies, warehouse rentals etc. totals 5 million dollars this year. The federal income tax rate for your company is 40 percent.
Your company is publicly traded on the NASDAQ with 1,000,000 shares outstanding.
2. Create a two-year forecast of the income statement from the information provided in problem number one.
Please create three columns of data: current year, year 2, and year 3. Assume that sales increase ten percent per year for year's two and three.
Please show the earnings per share for each of the three years.
3. Please estimate the stock price for year's two and three, assuming that the current PE ratio remains constant for each of the two forecasted years
Purchase this Solution
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
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 Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking