Company ABC has a market capitalization of $750 million, Book Value (Shareholder’s Equity) Per share of $15 and net income of $25 million. If the stock is currently trading at $30. The Return on Equity is:   3.3%   6.7%   9.3%   50.0%

Q: let's assume Company XYZ has the following characteristics: Shares Outstanding: 1,000,000 Current…

A: Enterprise valuation can be calculated by using this equation Enterprise value =Market…

Q: The following information relates to A Ltd and B Ltd. Two companies which operate in the same…

A: Earning Per Share- Earning Per Share is the ratio of a company's earnings for its equity…

Q: A company paid cash dividends of $0.81 per share. Its earnings per share is $6.95 and its market…

A: Given: Cash dividend per share = $0.81 Earnings per share = $6.95 Market price per share = $45.00

Q: Calculate Return on Equity from the following: Net income $519.4, Preferred dividends 0.0, Average…

A: RETURN ON EQUITYReturn on Equity is the Ratio between Net Income for Common Stockholder Equity &…

Q: Currently, Gamora Corporation has a capital structure that consists of 50% equity and 50% debt. The…

A: Given, Cost of debt = 8% Weight of debt = 50% Weight of equity = 50% Tax rate = 30% Year end…

Q: 3.4. The following information is available about Dnieper Company. Number of shares = 100,000 EBIT =…

A: PE Ratio is ratio of market price and earning of shares. Interest coverage ratio is ratio of…

Q: Net income for the year is  $ 45 million.What Price would you expect to pay if you bought the stock…

A: Given that: Number of shares = 15,000,000 (15,000,000/1)  Market price = $30 per share Stock…

Q: A firm has a debt ratio (defined as total liabilities to total assets) of 75%, $250,000 in debt, and…

A: Computation of ROE is shown as follows: Hence, correct option is D.

Q: The percentage of capital structure for ZEF Incorporated is provided here: Capital structure…

A: Weight of debt (Wd) = 21% Weight of preferred stock (Wp) = 5% Weight of common stock (We) = 74% Cost…

Q: The Sweet Melon Corp. has total 100 shares trading on the market at $20 each.The book value of the…

A: We have select financial information available about the market value of debt and equity of a firm.…

Q: The following financial information is available on Morgan Company: Current per share market price:…

A: Here,Current per Share Market price is $58.90Current per Share Dividend is $2.80Expected Long term…

Q: From the following information, complete the Balance Sheet Equity 500,000, Current Liabilities to…

A: The question is related to Ratio Analysis. The details regarding ratio are given.

Q: Your company is considering a $1,200,000 capital project that will generate a before tax cash flow…

A: As per the Q&A guidelines, if multiple questions are asked at once, then the first question will…

Q: Network Communications has total assets of $1,570,000 and current assets of $626,000. It turns over…

A: Data given: Total assets = $1,570,000  Current assets=$626000  Fixed assets turnover=6 times…

Q: A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets…

A: Market value of equity = 1,200Number of shares outstanding = 300The current share price is

Q: A firm paid a dividend of Rs. 3 to equity holders. The firm's cost of equity is 15%; and the firm's…

A: According to the Gordon Growth model the value of the stock is expected dividend divided by the (…

Q: Assume JUP has debt with a book value of $20 million, trading at 120% of par value. The firm has…

A: Weighted Average Cost of Capital ("WACC") is the overall cost of capital for the company for all the…

Q: 5. A company has $6,435,000 in common equity and 1,063,000 in outstanding shares. Shares sell at a…

A: Market value is the total value of shares based on their market price. Book value is the total value…

Q: A company paid cash dividends of $0.81 per share. Its earnings per share is $6.95 and its market…

A: Dividend Yield:-This is a financial ratio which shows how much a company pays dividend on each stock…

Q: assume an analyst has valued a stock at $59.75 per share. What was the NPV of the firm if there are…

A: Value of stock = $59.75 per shareNumber of shares outstanding = 3,500,000Value of debt = $24,000,000

Q: Paranto company has the following Capital structure: 50% equity, 30% debt; and 20% preferred stock.…

A: Weighted average cost of capital(WACC) is the average cost of capital calculated by multiplying the…

Q: The Tyler Oil Company's capital structure is as follows: Debt Preferred stock Common equity 15% 20…

A: The cost of capital is the expense a company incurs to finance its operations. It includes the cost…

Q: Brenda Limited has an enterprise value of $10 million, total debt of $4 million and 2 million shares…

A: The value of equity on a per-share basis is based on the overall equity value for the firm as well…

Q: ABC's Net Income this year was $20,650,000 and there were 19.5 million shares outstanding. If the…

A: Given, Net Income = $20650000 Shares Outstanding = 19500000

Q: Assume a company has 10mm outstanding shares of stock that currently trade at $50 per share.  Assume…

A: The weighted average cost of capital is the overall cost of raising capital. The total investment of…

Q: (Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $36.46 a…

A: Cost of capital for preferred stock of the firm is defined as the rate of return, which actually…

Q: The following are some financial data pertaining to Czy Corporation: Capital Structure (In…

A: The cost of equity can be calculated with the help of CAPM equation

Q: which of the following would be expected to be closest to​ Matilda's stock​ price?

A: Stock valuation is the method of finding the the value of the stock of a company. The present…

Q: If RTM's stock is currently trading at AED 24 and RTM has 25 million shares outstanding, shareholder…

A: Book Value of any company is its total assets less any liabilities and intangible assets. Assets.…

Q: If the company was calculating its weighted average cost of capital(WACC),the proportion of…

A: WACC: It represents the average cost of capital for the company or a firm. It is estimated by the…

Q: A company has the following information in its statement of financial position. Ghs'm Ordinary…

A: Weighted average cost of capital is the expected rate of return that is expected from a company to…

Q: A firm has 750 bonds outstanding that are selling for $989 each, 2,500 shares of preferred stock…

A: Total value of bonds=(750*989)=$741750Total value of preferred stock=(2500*47)=$117500Total value of…

Q: Firm has 120,000 outstanding shares, growth rate of 3.6%, with 648,200 in Free Cash Flow and a…

A: Free cash flow for a form is the cash flow available to a company after it has spent all its capital…

Q: A firm with sales of $500,000, net profits after taxes of $20,000, total liabilities of $200,000,…

A: To calculate the return on equity we will use the below formula   Return on equity = Net profit…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.