Use the following information to answer this question.
Windswept, Inc. 2017 Income Statement ($ in millions) |
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Net sales | $ | 9,750 | |
Cost of goods sold | 7,800 | ||
Depreciation | 355 | ||
Earnings before interest and taxes | $ | 1,595 | |
Interest paid | 94 | ||
Taxable income | $ | 1,501 | |
Taxes | 450 | ||
Net income | $ | 1,051 | |
Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) |
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2016 | 2017 | 2016 | 2017 | ||||||||||
Cash | $ | 250 | $ | 270 | Accounts payable | $ | 1,480 | $ | 1,732 | ||||
Accounts rec. | 1,050 | 950 | Long-term debt | 1,040 | 1,228 | ||||||||
Inventory | 1,720 | 1,630 | Common stock | 3,300 | 3,000 | ||||||||
Total | $ | 3,020 | $ | 2,850 | Retained earnings | 620 | 870 | ||||||
Net fixed assets | 3,420 | 3,980 | |||||||||||
Total assets | $ | 6,440 | $ | 6,830 | Total liab. & equity | $ | 6,440 | $ | 6,830 | ||||
Windswept, Inc., has 520 million shares of stock outstanding. Its price–earnings ratio for 2017 is 20. What is the market price per share of stock?
Step 1Given:Net income = $1,051 millionNumber of shares = 520 millionPrice - earning ratio = 20Step 2EPS = Net income / Number of sharesEPS = ... See the full answer