Kirstin Zaldays, CFA, is researching the relative valuation of two companies in the aerospace/defense industry, the Lockheed Martin Corporation (LMT) and RTX Corporation (RTX). She has gathered relevant information on the companies in the following table. EBITDA comparison (in $ Millions except per-share data) Company Price per share Shares outstanding Market value of debt Cash and short-term investments Net income. Interest expense Depreciation and amortization Taxes LTM 410.96 251.8 17,545 3,673 7,060 772 1,391 1,229 RTX 72 1,452.10 38,530 5,391 5,562 1,369 4,173 937

Kirstin Zaldays, CFA, is researching the relative valuation of two companies in the aerospace/defense industry, the Lockheed Martin Corporation (LMT) and RTX Corporation (RTX). She has gathered relevant information on the companies in the following table. EBITDA comparison (in $ Millions except per-share data) Company Price per share Shares outstanding Market value of debt Cash and short-term investments Net income. Interest expense Depreciation and amortization Taxes LTM 410.96 251.8 17,545 3,673 7,060 772 1,391 1,229 RTX 72 1,452.10 38,530 5,391 5,562 1,369 4,173 937

Name: Kirstin Zaldays, CFA, is researching the relative valuation of two co
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Description: Kirstin Zaldays, CFA, is researching the relative valuation of two companies in the aerospace/defenseindustry, the Lockheed Martin Corporation (LMT) and RTX Corporation (RTX). She has gathered relevantinformation on the companies in the following ta

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions Cash and equivalents Short-term investments Accounts receivable HAL SLB $2,008 $1,433 1,344 5,182 7,802 Current assets Current liabilities Total liabilities Total equity 11,151 15,731 4,754 13,351 16,438 33,921 9,449 36,220 Earnings before interest and tax (EBIT) 2,442 3,020 Interest expense, gross 554 537 a. Compute the following measures for both companies. Note: Round your final answers to two decimal places (for example, enter 6.78 for 6.77555). HAL SLB 1. Current ratio 2.32 X 1.17 x 2. Quick ratio 1.5 x 0.68 * 3. Times interest earned 4.45 x 5.67 x 4. Liabilities-to-equity 1.7 x 0.92 x b. Which company appears more liquid? HAL c. Which company appears more solvent? SLB =>
1.) Solve the Income Statement of AAA Company using Horizontal Analysis. 2.) As a Financial Analyst how would you interpret the data?
Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions Cash and equivalents Short-term investments Accounts receivable Current assets Current liabilities Total liabilities Total equity Earnings before interest and tax (EBIT) Interest expense, gross HAL SLB $2,008 $1,433 1,344 5,391 8,117 11,151 15,731 4,946 13.891 16,438 33,921 1. Current ratio 2. Quick ratio 3. Times interest earned 4. Liabilities-to-equity 9,830 37,684 2,541 3,142 554 537 a. Compute the following measures for both companies. Note: Round your final answers to two decimal places (for example, enter 6.78 for 6.77555). HAL SLB b. Which company appears more liquid? c. Which company appears more solvent? ◆
Assess the relative profitability of the company (as benchmarked with competitors) using the following ratios: gross profit margin net profit margin return on assets return on equity
A Comparison of Firm Performance 1 2 2013 Financials 3 Net operating revenues 4 Cost of goods sold 5 Gross profit 6 Selling, general, and administrative expense 7 Other costs 8 Operating income 9 Interest expense 10 Other income (loss) - net 11 Income before income taxes 12 Income taxes 13 Net income 14 Assets 15 Cash and cash equivalents 16 Net receivables 17 Inventories 18 Prepaid expenses and other 19 Total current assets 20 Property, plant and equipment 21 Goodwill 22 Other assets 23 Total assets 24 Liabilities and Stockholder Equity 25 Accounts payable 26 Short-term debt 27 Total current liability 28 Long-term debt 29 Other liabilities 30 Total liabilities 31 Stockholder equity 32 B Walmart 469,162 352,488 116,674 88,873 27,801 2,251 187 25,737 7,981 17,756 7,781 6,768 43,803 1,588 59,940 116,681 20,497 5,987 203,105 59,099 12,719 71,818 41,417 113,235 89,870 C Macy's 27,931 16,725 11,206 8,440 88 2,678 388 (134) 2,156 767 1,389 1,836 371 5,308 361 7,876 8,196 3,743 1,176 20,991…
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You are evaluating the balance sheet for SophieLex’s Corporation. From the balance sheet you find the following balances: cash and marketable securities = $280,000; accounts receivable = $1,380,000; inventory = $2,280,000; accrued wages and taxes = $590,000; accounts payable = $890,000; and notes payable = $780,000. What is the quick ratio (round your answer to 2 decimal places
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4. (Question 4 is composed of two parts.) The DuPont formula defines the net return on shareholders' equity as a function of the following components: • Operating margin Asset turnover Interest burden Financial leverage Income tax rate Using only the data in the table shown below: a. Calculate each of the five components listed above for 2010 and 2014, and calculate the return on equity (ROE) for 2010 and 2014, using all of the five components. Show calculations. b. Briefly discuss the impact of the changes in asset turnover and financial leverage on the change in ROE from 2010 to 2014. Income Statement Data Revenues Operating income Depreciation and amortization Interest expense Pretax income Income taxes Net income after tax Balance Sheet Data Fixed assets Total assets Working capital Total debt Total shareholders' equity 2010 $542 38 3 3 32 13 19 2010 $41 245 123 16 159 2014 $979 76 9 0 67 37 30 2014 $70 291 157 0 220
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You are evaluating the balance sheet for SophieLex's Corporation. From the balance sheet you find the following balances: cash and marketable securities = $450,000; accounts receivable = $1,100,000; inventory = $2,000,000; accrued wages and taxes = $450,000; accounts payable = $750,000; and notes payable = $500,000. Calculate SophieLex's current ratio.
Given the financial data in the popup window, , for Disney (DIS) and McDonald's (MCD), compare these two companies using the following financial ratios: debt ratio, current ratio, total asset turnover, financial leverage component (equity miltiplier), profit margin, and return on equity. Which company would you invest in, either as a bondholder or as a stockholder? The debt ratio for Disney is nothing. (Round to four decimal places.) Help Me Solve ThisView an Example Get More Help Clear All Check Answer Data Table Click on the following Icon in order to past this table's content into a spreadsheet. Disney McDonald's Sales $48,792 $28,023 EBIT $12,116 $8,123 Net Income $7,572 $5,507 Current Assets $15,187 $5,004 Total Assets $84,112 $36,637 Current Liabilities $13,105 $3,064…

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