FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Marrow_forward20Y8 20Υ7 20Υ6 20Y5 20Υ4 Net income $1,120,400 $965,900 $811,700 $693,800 $588,000 Interest expense 380,900 347,700 300,300 229,000 182,300 Income tax expense 358,528 270,452 227,276 180,388 141,120 Total assets (ending balance) 6,308,280 6,633,962 4,788,646 4,965,740 3,765,686 Total stockholders' equity (ending balance) 2,021,243 2,424,789 1,550,109 1,918,695 1,151,217 Average total assets 6,471,121 5,711,304 4,877,193 4,138,117 3,517,352 Average stockholders' equity 2,223,016 1,987,449 1,734,402 1,534,956 1,342,466 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Y4-20Y8 Return on total assets 22.9% 47.2% Return on stockholders' equity 4.6 Times interest earned 2.1 Ratio of liabilities to stockholders' equity Required: 1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place: a. Return on total…arrow_forwardOnly need last 2 parts of the problem.arrow_forward
- Bholaarrow_forwardD0 = $1.75, g = 3.6%, P0 = $32, find the stock return 9.27% 9.59% 9.18% 9.13%arrow_forwardext Arlal B IUA c3回回-|三,| 1三 |:三▼ m、EE 一 1. 1.5 Best, worst, and average returns for various stock/bond allocations, 1997-2019 Portfolio allocation Stocks Bonds 0% 100% 10% 90% 20% 30% 70% 40% 50% 60% 70% 80% 90% 100% 60% 50% 40% 30% 20% 10% 0% 50% 40% 35.1% 32.3% 30% 29.4% 26.6% 23.7% 20% 18.0% 20.9% 12.1% 12.3% 15.2% 11.2% 5.4% 10% 5.0% 5.8% 6.2% 6.7% 7.1% 7.5% 7.9% 8.3% 8.8% 9.29 -2.1% 4.0% e10% 8.6% 13.1% -20% -17.7% -22.2% 30% -26.8% -31.3% -40% -35.9% -40.4% -60% Best returns Worst returns Average annual returns 2. What is the average annual return if someone 1. What is the average annual return if someone invested 100% in bonds? invested 100% in stocks?arrow_forward
- Consider the following premerger information about Firm A and Firm B: Firm A Firm B $2,700 $900 200 1,000 $ 29 $ 33 Total earnings Shares outstanding Price per share Assume that Firm A acquires Firm B via an exchange of stock at a price of $35 for each share of B's stock. Both A and B have no debt outstanding. a. What will the earnings per share, EPS, of Firm A be after the merger? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What will Firm A's price per share be after the merger if the market incorrectly analyzes this reported earnings growth (that is, the price-earnings ratio does not change)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What will the price-earnings ratio of the postmerger firm be if the market correctly analyzes the transaction? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) If there are no synergy gains, what will…arrow_forwardThe re-issuance of treasury stock for cash would be reported on a statement of cash flows under the following section: O Investing O Leases O Borrowing O Operarting O Bonds O Financing ASUS f4 f9 团 f5 f6 f7 f10 f11 & 4 6 Y U F G H. K V B N 08 因 5 %24arrow_forwardExamus student.use.examus.net/?ridban=1&sessi. ACCT101 FEX_2021_2_Male e18 Stockholders' equity consists of: 96 18 - 34 a. Long-term assets 11 18c Contributed capital and 95abe18 b. 95 par value 95abe18 C. Retained earnings and cash d. 95abe18ce33 Contributed capital and retained earnings Sabe18ce 33 95abe18ce33 95a 95abe18ce33 96abe18ce33 95abe18ce33 MacBook Pro F3 000 000 F4 つ 4 F5 F6 50 F7 67 & DII 7 V FS 8 A 9 9 个 IIarrow_forward
- D0 = $2, g = 5%, P0 = $30, find the stock return 10% 11% 12% 13%arrow_forwardD1 = $0.8, rs = 10.5%, g = 6%. Calculate stock price. $18.17 $17.45 $18.04 $17.78arrow_forward4 Skipped Use the following data for Questions 3-5: Value 12500 17500 20000 Stock A B C Exp. Return 8.5% 9.2% 10.6% Beta 0.8 1.2 1.4 Question 4: What is the portfolio's Beta? ENTER YOUR ANSWER ROUNDED TO 2 DECIMAL PLACESarrow_forward
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