Answer Market value per share =$75 Common equity= 6,000,000 Number of share outstanding =800,000,000 Market to book ration = $75/(6,000,000/800,000,000) 6,000,000/800,000,000=.75 Market to book ration= 75/.75= 100 3-4 Price/Earnings Ratio A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? Answer Price /cash flow ratio= price per share/ cash flow per share Price per share = $8 x $3 = $24 P.E = Price per share / EPS P.E = $24 / 1.5 = 16 3-5 ROE Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is ROE Answer ROE= profit margin x asset turnover x equity multiplier =3% asset turnover = sales/asset = 50/100= 2 equity multiplier=2 ROE= 3% x2 x2= 12% 3-6 Du Pont Analysis Donaldson & Son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%.
Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? 75*800 million= $60 billion Book Value= Assets- Liabilities $10 billion in total assets- $4 billion in current liabilities and long-term debt= $6 billion in common equity Market/Book Ratio= $60 billion/$6 billion= 10 3-4 Price/Earnings Ratio A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0.
Winston has $10 billion in total as- sets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? Answer Market value per share =$75 Common equity= 6,000,000 Number of share outstanding You must Login to view the entire essay.
• $4,072. • $6,100. • $4,100. Multiple Choice Question 198 Given the following account balances at year end, compute the total intangible assets on the balance sheet of Janssen Enterprises. Cash $1,500,000 Accounts Receivable 4,000,000 Trademarks 1,000,000 Goodwill 2,500,000 Research & Development Costs 2,000,000 • $7,500,000.
8% b. 8% 2. a. A $1,000 bond has a 7.5 percent coupon and matures after 10 years. If current interest rates are 10 percent, what should be the price of the bond? Price = $1,000 x 0.3855 + $1,000 x 7.5% x 6.1446 Price = $385.50 + $460.85 Price = $846.35 b.
Accounting Homework Assignment #1 1. Question 1: Brady Brothers, a partnership, has total assets of $350,000 and $100,000 of owners' equity. What are the partnership's total liabilities? Assests-Owners Equity= Liabilities $350,000-$100,000= $250,000 Based on the Bradys Brothers partnership, their total liabilities is $250,000. 2.
Prophet Corporation has an extraordinary loss of $200,000, an unusual gain of $140,000, and a tax rate of 40%. At what amount should Prophet report each item? Extraordinary loss Unusual gain a. $(200,000) $140,000 b. (200,000) 84,000 c. (120,000) 140,000 d. (120,000) 84,000 3.
Statement of Cash Flows ACC/537 August 12, 2013 Joseph Mc Donald Statement of Cash Flows Carpino Company Statement of Cash Flows - Indirect Method For the Year Ended January 31, 2007 Cash flows from operating activities Net loss $(30,000) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation expense $55,000 Gain on sale of investment (5,000) 50,000 Net cash provided by operating activities 20,000 Cash flows from investing activities Purchase investment (75,000) Purchase fixtures and equipment (330,000) Sale of investment 80,000 Net cash used by investing activities (325,000) Cash flows from financing activities Sale of capital stock 420,000 Purchase of treasury stock (10,000) Net cash provided by financing activities 410,000 Net increase in cash 105,000 Cash at beginning of period 140,000 Cash at end of period 245,000 Noncash investing and financing activities Issuance of note to purchase truck 20,000 Memo to Shareholders January 31, 2007 To our shareholders, Carpino Company had a performing year. The company is still in the growth phase and first year of business, so there was not a lot of cash from operations. The company had a net loss for the year. Carpino Company had revenue in the amount of $391,000. The revenue was made up of $380,000 for sales of merchandise, $6,000 for interest on investments, and $5,000 for a gain on the sale of investments.