The following information has been taken from the Muscat Company: Sales return 1,450 Other revenue 130,000 5,000 5,000 freight and transportation out Interest expense Preferred stock dividends 4,000 Repair Expenses 10,000 Gross profit 50,000price-earnings ratio number of common shares 2,000 income tax rate 40% outstanding Required: Compute the market price per share and explain the result

The following information has been taken from the Muscat Company: Sales return 1,450 Other revenue 130,000 5,000 5,000 freight and transportation out Interest expense Preferred stock dividends 4,000 Repair Expenses 10,000 Gross profit 50,000price-earnings ratio number of common shares 2,000 income tax rate 40% outstanding Required: Compute the market price per share and explain the result

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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The following information has been taken from the Muscat Company: Sales Revenue $3,060 Not payable 139 Total operating expenses 600 Accounts Receivable 500 Cost of goods sold 1,800 Preferred stock dividends 18 Tax rate 40% Interest expense 126 Accounts payable 240 Number of shares of common issues 1,000 What is the earnings per share? Answer:
Selected ratios for the current year for three companies in the office furniture industry follow: Office Inspirations Office By Design Ratio Max Office Ltd. Inc. Corporation Dividend Yield 3.1% 2.0% 0.9% Price Earnings 24.6 times 19.7 times 29.2 times Payout Debt to Assets Return on Equity 2.6% 3.4% 1.0% 64% 72% 66% 24.7% 29.7% 25% Based on the above ratios which company has used leverage to increase its return to investors? Max Office Ltd. Office Inspirations Inc. None of the above. Office By Design Corporation.
If you could possibly include the steps into how to get the final percentage for each company I would appreciate it greatly thank you!!
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets Long-term assets $ 42,529 46,842 Current liabilities Long-term debt Other liabilities Equity $ 29,750 27,757 14,327 17,537 $ 89,371 Total $ 89,371 Total Locust has 662 million shares outstanding with a market price of $88 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders? Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the company's market value added. Note: Enter your answers in millions. Market value Market value added million million
Tarej Company reported the following figures: Profit before tax: $500,000 Corporate tax rate: 30% Dividend to preferred shareholders: $20,000 Dividend to common shareholders: $25,000 Determine the dividend coverage ratio for common shareholders
The most recent financial statements for Bello Company are shown here: Balance Sheet $ 4,700 Current assets $ 4,996 Debt 3,102 Fixed assets 12,230 Equity Taxable $ $1,598 Total Total income 17,226 Taxes (22%) 352 Net Income $1,246 Income Statement Sales Costs Tran 5.07% Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 32 percent dividend payout ratio. What is the internal growth rate? 5.27% 13.26% 5.17% $ 9,988 7,238 2.37% $ 17,226
The following information is available for Jase Company: Market price per share of common stock $25.00 Earnings per share on common stock 1.25 Which of the following statements is correct? a. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year. b. The market price per share and the earnings per share are not statistically related to each other. c. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. d. The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year.
The following information of Red Oak Manufacturing is available for the current year: Net income $844,200 Net sales 6,809,000 Average total assets 5,911,000 Average stockholders' equity 2,575,000 The total leverage as per the DuPont analysis computation is
Please help me with show all calculation thanku
Assume the following data for Cable Corporation and Multi-Media Incorporated. Multi-Media Incorporated Cable Corporation $ 39,800 352,000 409,000 $ 190,000 2,170,000 966,000 234,000 545,000 175,000 421,000 Net income Sales Total assets Total debt Stockholders' equity a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent rounded to 2 decimal places. Cable Corporation Multi-Media, Incorporated 2. Which firm has the higher return? Return on Stockholders' Equity % %
VERTICAL ANALYSIS Give the analysis per line item. Sabina Electronics Comparative Income Statement This year Last year This year 5,000,000 3,875,000 1,125,000 653,000 472,000 72,000 400,000 120,000 280,000 110,000 Last year 4,350,000 3,450,000 900,000 548,000 352,000 72,000 280,000 84,000 196,000 95,000 Sales 100% 100% Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes 78% 79% 23% 21% 13% 13% 9% 8% 1% 2% 6% 2% 5% 2% 8% Income taxes (30%) Net income 2% 6% Common dividends 2% 101,000 579,000 680,000 Net income retained 170,000 3% 2% Beginning retained earnings Ending retained earnings 680,000 850,000

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