Amherst Company has a net profits of $11 millon, sales of $194 milion, and 4.8 milion shares of common stock outstanding. The company has total assets of 15 million and total stockhoiders equity of $54 milion. pays $1.08 per share in common dividends, and the stock trades at S20 per share. Given this information ermine the following Amherst's EPS. Amhersts book value per share and pric-to-book-value ratio The fims PE ratio. The company's net profit margin. The stock's dividend payout ratio and its dividend yield. The stock's PEG ratio, glven that the company's eamings have been growing average annual rate of 88%

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 5E
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The Amherst Company has a net profits of $11 million, sales of $194 milion, and 4.8 milion shares of common stock outstanding. The company has total assets of
$115 milion and total stockholders' equity of $54 milion. It pays S1.08 per share in common dividends, and the stock trades at $20 per share, Given this information,
determine the following
a. Amherst's EPS.
b. Amhersts book value per share and price-to-book-value ratio.
c. The firm's PE ratio.
d. The company's net profit margin.
e. The stock's dividend payout ratio and its dividend yield.
1. The stock's PEG ratio, given that the company's aarnings have been growing at an average annual rate of 8.8%
Transcribed Image Text:The Amherst Company has a net profits of $11 million, sales of $194 milion, and 4.8 milion shares of common stock outstanding. The company has total assets of $115 milion and total stockholders' equity of $54 milion. It pays S1.08 per share in common dividends, and the stock trades at $20 per share, Given this information, determine the following a. Amherst's EPS. b. Amhersts book value per share and price-to-book-value ratio. c. The firm's PE ratio. d. The company's net profit margin. e. The stock's dividend payout ratio and its dividend yield. 1. The stock's PEG ratio, given that the company's aarnings have been growing at an average annual rate of 8.8%
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