1. What is the required rate of return for the common equity shareholders using CAPM? 2. Use the year-end 2020 data to compute the market-to-book ratio. 3. What is the implied value to book ratio?
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1. What is the required
2. Use the year-end 2020 data to compute the market-to-book ratio.
3. What is the implied value to book ratio?
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- Ratio Analysis Consider the following information taken from the stockholders equity section: How do you interpret the companys payout and profitability performance? Required: 1. Calculate the following for 2020. (Note. Round answers to two decimal places.) 2. CONCEPTUAL CONNECTION Assume 2019 ratios were: and the current year industry averages are: How do you interpret the companys payout and profitability performance?The equity portions of a company's balance sheets for end of 2022 and 2023 are shown below: Common Stock ($0.50 par) Capital Surplus Retained Earnings O $1.42 Calculate the average price per share at which new shares were sold in 2023. $1.92 $0.75 None of these options are correct 2022 $2,268,566 $1,067,967 $2,005,277 $0.50 2023 $3,729,028 $5,223,225 $6,911,362Financial information for Forever 18 includes the following selected data:($ in millions) 2021 2020Net income $ 129 $ 308Dividends on preferred stock $ 20 $ 15Average shares outstanding 150 400Stock price $ 12.02 $ 10.97Required:1. Calculate earnings per share in 2020 and 2021. Did earnings per share increase in 2021?2. Calculate the price-earnings ratio in 2020 and 2021. In which year is the stock priced lower in relation to reported earnings?
- Presented below is information related to Milson, Inc.: December 31, 2021 2020 Common stock P 75,000 P 60,000 6% Preferred stock 350,000 350,000 Retained earnings (includes net income for current year) 90,000 75,000 Net income for year 60,000 32,000 What is Milson's rate of return on common stock equity for 2021?Selected data for VHRV Inc. as of 31 December of each year is as follows: 2019 2020Preferred stock, 8% par P100, non-cumulative 250,000 250,000Common stock 600,000 800,000Retained earnings 150,000 370,000Dividends paid on preferred stock for the year 20,000 20,000Net income for the year 120,000 240,000What is VHRV Inc. return on common equity in 2020?SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $396,800 in 2023 and $335,800 in 2022. Equity and Liabilities. Share capital-common (121,500 shares issued) Retained earnings (Note 1) Accrued liabilities. Notes payable (current) Accounts payable. Total equity and liabilities 2023 2022 $1,431,000 $1,431,000 398,000 8,700 79,700 56,400 $1,973,800 268,900 6,100 59,200 182,500 $1,947,700 Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023.
- Below is a company’s stock quote on March 1, 2021: Name Close Net Chg Div P/E DSD 20.25 -.15 1.05 16 What is the company’s earnings per share (EPS)?The equity portions of a company's balance sheets for end of 2021 and 2022 are shown below: 2021 2022 $1,898,646 $3,818,440 $2,685,439 $6,714,937 $2,547,130 $7,242,627 Calculate the average price per share at which new shares were sold in 2022. Common Stock ($0.50 par) Capital Surplus Retained Earnings 0.78 1.55 0.50 O None of these options are correct 1.05CASE3: Data as given are shown below: Year Bartman Reynolds Market Index Stock Price Dividend Stock Price Dividend 2020 $17.250 $1.150 $48.750 $3.000 11,663.98 2019 14.750 1.06 52.300 2.90 8,785.70 2018 16.500 1.000 48.750 2.750 8,679.98 2017 10.750 0.950 57.250 2.500 6,434.03 2016 11.375 0.900 60.000 2.250 5,602.28 2015 7.625 0.850 55.750 2.000 4,705.97 Use the data given to calculate annual returns for Bartman and Reynolds, and the Market Index, and then calculate average returns over the five-year period. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the beginning price. Assume that dividends are already included in…
- Required information (The following information applies to the questions displayed below. Financial information for Forever 18 includes the following selected data: ($ in millions except share data) Net income 2021 $ 120 $ 30 2020 $ 210 $21 Dividends on preferred stock Average shares outstanding (in millions) Stock price 250 s00 $11.47 $10.42 Required: 1-a. Calculate earnings per share in 2020 and 2021, (Enter your answers in millions (i.e. 5,500,000 should be entered as 5.5).) Earnings Per Share 2020 2021 1-b. Did earnings per share increase in 2021? O Yes O NoFinancial information for Forever 18 includes the following selected data: ($ in millions) 2024 2023 Net income $160 $171 Dividends on preferred stock $22 $17 Average shares outstanding 250 300 Stock price $11.92 $10.87 2-a. Calculate the price-earnings ratio in 2023 and 2024. 2-b. In which year is the stock priced lower in relation to reported earnings?XYZ stock price and dividend history are as follows: Dividend Paid at Year-End $5 Year 2018 2019 2020 2021 Beginning-of- Year Price $ 130 144 120 125 An investor buys six shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all eight remaining shares at the beginning of 2021. Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic time-weighted average returns Geometric time-weighted average returns 5 5 5 Date b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Cash Flow % %