Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Calculate the profit margin, basic earning power (BEP),
A computer manufacturer has financial statements as follows:
|
Income Statements for Year Ending December 31 |
|||||
|
(Thousands of Dollars) |
2019 |
2018 |
|||
|
Sales |
$945,000 |
$900,000 |
|||
|
Expenses excluding |
812,700 |
774,000 |
|||
|
EBITDA |
$132,300 |
$126,000 |
|||
|
Depreciation and amortization |
33,100 |
31,500 |
|||
|
EBIT |
$99,200 |
$94,500 |
|||
|
Interest Expense |
10,470 |
8,600 |
|||
|
EBT |
$88,730 |
$85,900 |
|||
|
Taxes (25%) |
22,183 |
21,475 |
|||
|
Net income |
$66,547 |
$64,425 |
|||
|
Common dividends |
$56,609 |
$54,115 |
|||
|
Addition to |
$9,938 |
$10,310 |
|||
|
|
|||||
|
(Thousands of Dollars) |
|||||
|
Assets |
2019 |
2018 |
|||
|
Cash and cash equivalents |
$47,250 |
$45,000 |
|||
|
Short-term investments |
3,800 |
3,600 |
|||
|
Accounts Receivable |
283,500 |
270,000 |
|||
|
Inventories |
141,750 |
135,000 |
|||
|
Total current assets |
$476,300 |
$453,600 |
|||
|
Net fixed assets |
330,750 |
315,000 |
|||
|
Total assets |
$807,050 |
$768,600 |
|||
|
Liabilities and equity |
|||||
|
Accounts payable |
$94,500 |
$90,000 |
|||
|
Accruals |
47,250 |
45,000 |
|||
|
Notes payable |
26,262 |
9,000 |
|||
|
Total current liabilities |
$168,012 |
$144,000 |
|||
|
Long-term debt |
94,500 |
90,000 |
|||
|
Total liabilities |
$262,512 |
$234,000 |
|||
|
Common stock |
444,600 |
444,600 |
|||
|
Retained Earnings |
99,938 |
90,000 |
|||
|
Total common equity |
$544,538 |
$534,600 |
|||
|
Total liabilities and equity |
$807,050 |
$768,600 |
|||
|
Other data |
|||||
|
Tax rate |
25% |
Shares outstanding 15,000,000
Stock price $65 per share
|
WACC |
8% |
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- Need Answerarrow_forwardC Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,184; Total assets = $3,000; Short-term investments = $200; Total capital employed = $2,193; and tax rate = 30%. The company’s WACC is 11.07%. What was its Economic Value Added (EVA) for the year 2020? Round your answer to the nearest dollar. Group of answer choices: $583 $586 $577 $572 $580arrow_forwardForecast an Income Statement Following is the income statement for Medtronic PLC. Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019 Net sales $27,807 Costs and expenses Cost of products sold 8,331 Research and development expense 2,330 Selling, general, and administrative expense 9,480 Amortization of intangible assets 1,605 Restructuring charges, net 198 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 5,439 Other nonoperating income, net (373) Interest expense 1,314 Income before income taxes 4,498 Income tax provision 547 Net income 3,951 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $3,932 Use the following assumptions to prepare a forecast of the company’s income statement for FY2020. Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal…arrow_forward
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