Compute the following ratios for both companies for the current year, and decide which company’s stock better fits your investment strategy. Debt Ratio Earning per share of common stocks Price/earning ration Dividend payout
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Compute the following ratios for both companies for the current year, and decide which company’s stock better fits your investment strategy. Debt Ratio Earning per share of common stocks Price/earning ration Dividend payout
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- Assume you are given the following relationships for the Warner Corporation: Sales / Total assets 1.2× Return on assets (ROA) 3.95% Return on equity (ROE) 7.70%Calculate Warner’s profit margin. a. 4.74% b. 9.24% c. 3.29% d. 1.95% e. 6.42%Profitability and Asset Management Ratios You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2018: net income = $680,000, total debt = $13.8 million, debt ratio = 43%. What is Tikki's ROE for 2018? Multiple Choice 4.93% 11.47% 2.12%% 3.72%Identifying Comparables and Valuation using PB and PETailored Brands Inc.’s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector. Ticker MarketCap($ mil.) PBCurrent ForwardPE (FY1) EPS 5-YearHistoricalGrowth Rate ROE(T 4Q) Debt-to-Equity(Prior Year) TLRD -- -- -- (0.47)% 22.50% 2.53 GCO 585.7 1.00 9.699 (323.73)% (5.86)% 0.13 ZUMZ 789.7 1.95 14.17 3.28% 13.85% 0.00 GES 1,147.0 2.07 13.19 (37.69)% 1.90% 0.56 ANF 988.2 1.00 19.69 9.37% 6.35% 0.25 TLYS 293.7 1.68 11.6 5.51% 13.93% 0.00 M 4,760.0 0.75 5.458 (1.74)% 16.70% 0.74 (a) Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TLRD’s equity intrinsic value using the PB ratio from these peer companies. (Round average PB ratio to two decimal places…
- The following information is given with respect to the ratio of two companies Aman LTD Roger LTD Current Ratio 2:01 1.60:1 Quick Ratio 1.35:1 1:01 Returns On investment 15% 13% Debt Equity Ratio 2:5:1 1:01 Define the concepts of Current and Quick ratio’s and also, reflect on your understanding towards the financial performance of the companies by looking to the above information? 3 b. Define the terms- Return on Investment and Debt equity ratio and also, reflect on your understanding towards the financial performance of the companies?213erform the 3 step DuPont Return on Equity (ROE) analysis for Brady Corp. using cell references. (25 pts) Write a brief analysis (50-100 words) of what you learn from the DuPont analysis on your Excel worksheet. Balance Sheet ($000) Ratios Calculation Assets Liabilities and Equity Liquidity Cash 2$ Accounts payable Notes payable 1,500 12,500 Current Marketable securities $ $ $ 2,500 12,500 Quick Accounts receivable 15,000 Total current liabilities $ 25,000 Inventory 33,000 Long-term debt 22,000 Asset Management Total current assets 2$ 52,000 Total liabilities 47,000 Average collection period Fixed assets (net) 35,000 Common stock (par value) 2$ 5,000 Inventory turnover Total assets $ Fixed-asset turnover Contributed capital in excess of par Retained earnings 87,000 18,000 17,000 Total asset turnover Total stockholders' equity 40,000 Total liabilities and stockholders' equity 87,000 Financial Leverage Debt Income Statement ($000) Other Info Debt-to-equity Times interest earned Sales…The discounted cash flow model and the corporate valuation model are the most widely used valuation techniques. Often these valuations are accompanied by market multiple analysis, which is based on the fundamental concept that sinar assets should have simlar values. Carlson Co, is a privately owned firm with few investors. Investors forecast their eamings per share (EPS) to reach $3 this coming year The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 11. The estimated intrinsic value of Carlson Co.'s stock will be Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic vakre per share of the fim Suppose you have the information given in the following table for Company X. EBITDA Total value of equity Total firm value per share. Year 1 Year 2 $10,680 $12,375 $121,500 $112,500 $182,250 $202,500
- [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Year $ 27,970 80, 264 100,917 9,097 251,134 $ 469,382 Exercise 13-11 (Algo) Analyzing profitability LO P3 Interest expense Income tax expense Total costs and expenses Net income Earnings per share Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 116,876 90,891 163,500 98,115 $ 469,382 $ 372,220 189,161 10,373 7,933 Current Year 1 Year Ago The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 610, 197 $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 579,687 $ 30,510 $1.88 $ 70,436…Problem 3 (Profitability Ratios) The following data are from the financial statements of Parada, Inc.: December 31, 2019 Total Assets = 180,000 TotalEquity = 144,000 Total Preference Equity = 30,000 Preference Dividends Declares = 2,400 Profit = 20,000 Interest Expense = 5,750 January 1, 2019 Total Assets = 140,000 Total Equity = 112,000 Total Preference Equity = 30,000 Calculate the following ratios: 1. Return on total assets 2. Return on ordinary equity Please provide a solution. Please provide a solution.ces The financial statements of Friendly Fashions include the following selected data (in millions): ($ in millions) Sales Net income Stockholders' equity Average Shares outstanding (in millions) Dividends per share Stock price FRIENDLY FASHIONS Return on equity Numerator/Denominator Dividend yield Numerator/Denominator Required: Calculate the following ratios for Friendly Fashions in 2024. (Enter your dividend yield and price-earnings ratio values to 2 decimal places. Enter your answers in millions (i.e. 5,500,000 should be entered as 5.5).) Earnings per share Numerator/Denominator Price-earnings ratio Numerator/Denominator Amounts Amounts Amounts 2024 $8,943 $310 $1,680 Amounts 680 $0.40 $7.00 2023 $10,034 $708 $2,320 0 0 0
- What is Ella Company’s equity ratio? a. 25.78% d. 74.22% b. 100.00% e. 137.78% c. 34.74%A6 Valuation Using the PE Multiple Nokia Corp. recently traded at $5.29 per share. At that time, earnings per share estimates for the next 12 months were $0.28. In addition, Motorola Solutions Inc. and Ericsson had forward PE ratios of 21.37 and 2 1.67, respectively. Required a. Using Motorola Solutions and Ericsson as comparables, estimate the intrinsic value of Nokia's equity per share. b. Does the estimate in part a suggest that Nokia is undervalued or overvalued? Explain.Profitability ratios. Reading material see chapter 3 and Profitability measures chapter 11. The table here shows information pertaining to the financial year that ended on 31.12.2023. Amounts in €: Income (net sales) 400, 000 Profit ( net income) 60,000 Average asset balance 1,000,000 Average balance of equity 600,000 Dividend paid per share 2.40 Earnings per share (EPS) 6.00 Exchange rate (value) per share at the end of the year 96.00 a) Calculate the profit ratio, turnover rate of assets and return on total assets for the year, i. e. ROI (also use DuPont Model) b) Calculate the return on equity for the year (ROE) c) Calculate the P/E ratio for the year d) Calculate the payout ratio for the year e) Calculate the dividend yield