Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The
Balance Sheet (Millions of $) | 2021 | |||
Assets | ||||
Cash and securities | $ | 4,200 | ||
Accounts receivable | 17,500 | |||
Inventories | 20,300 | |||
Total current assets | $ | 42,000 | ||
Net plant and equipment | 28,000 | |||
Total assets | $ | 70,000 | ||
Liabilities and Equity | ||||
Accounts payable | $ | 27,531 | ||
Accruals | 12,369 | |||
Notes payable | 5,000 | |||
Total current liabilities | $ | 44,900 | ||
Long-term bonds | 9,000 | |||
Total liabilities | $ | 53,900 | ||
Common stock | 3,864 | |||
12,236 | ||||
Total common equity | $ | 16,100 | ||
Total liabilities and equity | $ | 70,000 | ||
Income Statement (Millions of $) | 2021 | |||
Net sales | $ | 112,000 | ||
Operating costs except |
104,160 | |||
Depreciation | 2,240 | |||
Earnings before interest and taxes (EBIT) | $ | 5,600 | ||
Less interest | 840 | |||
Earnings before taxes (EBT) | $ | 4,760 | ||
Taxes (25%) | 1,190 | |||
Net income | $ | 3,570 | ||
Other data: | ||||
Shares outstanding (millions) | 500.00 | |||
Common dividends (millions of $) | $1,249.50 | |||
Int. rate on notes payable & L-T bonds | 6% | |||
Federal plus state income tax rate | 25% | |||
Year-end stock price | $85.68 |
What is the firm's equity multiplier? Do not round your intermediate calculations.
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Please show calculations and explain as well.
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