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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:The following information pertains to Concord Company. Assume that all balance sheet amounts
represent both average and ending balance figures. Assume that all sales were on credit.
Assets:
Cash and short-term investments
Accounts receivable (net)
Inventory
17,000
$38,000
30,000
Property, plant, and equipment215,000
Total Assets $300,000
Liabilities and Stockholders' Equity:
Current liabilities
Long-term liabilities
$58,000
91,000
Stockholders' equity-common 151,000
Total Liabilities and Stockholders' Equity
Income Statement:
Sales revenue $80,000
Cost of goods sold 47,000
Gross margin 33,000
Operating expenses 19,000
Net income $14,000
Number of shares of common stock 4,000
Market price of common stock $21
Dividends per share on common stock 0.90
Cash provided by operations $27,000
$300,000
What is the price-earnings ratio for this company? The EPS (earnings per share) of Dominica Inc. is
Rs. 120. If the average Price-Earnings ratio of comparable firms is 39.2, estimate the value of
Dominica's share.
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