You have found the following stock quote for RJW Enterprises

You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today\'s newspaper YLD % VOL 100s 17652 NET CHG 0.23 STOCK (DIV) HI LO PE CLOSE 72.18 53.17 RJW 1.28 2 21 What was the closing price for this stock that appeared in yesterday\'s paper? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16) Yesterday\'s closing price If the company currently has 25 million shares of stock outstanding, what was net income for the most recent four quarters? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g. 32.16)) Net income

Solution

Dividend of the stock is 1.28 and YLD is 2.1%. So,

Price of stock = Dividend/YLD = 1.28/0.021 = 60.95

We have to calculate the closing price of the stock that appeared in yesterday\'s newspaper,

x*(100-0.23)% = 60.95

x* 99.77% = 60.95

x = 61.09

ii) EPS = Price/PE = 60.95/21 = 2.90

No of shares = 25 millions

profit = 25*2.90 = 72.55 millions