Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Using Pfizer’s Income Statement, perform a horizontal analysis and answer the following questions: 1. What can you say about the company’s performance throughout the years? 2. What can you say about the sales performance of the company from 2008 to 2009? Research on what could have happened during that period which led to the results of your horizontal analysis?
Compute Topp Company's price-earnings (PE) ratio if its common stock has a market value of $22.20 per share and its earnings per
share (EPS) is $4.00.
Topp's key competitor, Lower Deck, has a price-earnings (PE) ratio of 9.5. For which company does the market have higher
expectations of future performance?
Complete this question by entering your answers in the tabs below.
Price Earnings
Ratio
Future
Performance
Compute Topp Company's price-earnings (PE) ratio if its common stock has a market value of $22.20 per share and
its earnings per share (EPS) is $4.00.
Choose Numerator:
Price Earnings Ratio
1 Choose Denominator:
1
1
Price Earnings Ratio
= Price Earnings Ratio
Use Apple’s financial statements to calculate the following ratios and summary measures for fiscal 2020 and 2019 (round to the nearest tenth). Indicate whether the ratio was more favorable in 2020 or 2019. Apple’s stock price was $115 per share on Sept. 30, 2020 and $55 on Sept. 30, 2019.
Fiscal 2020
Fiscal 2019
Is the Ratio
more favorable
in 2020 or 2019?
DAYS RECEIVABLE
DAYS INVENTORY
RETURN ON ASSETS
PROFIT MARGIN %
GROSS MARGIN %
RETURN ON EQUITY
CURRENT RATIO…
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- Use the data below to perform a relative valuation between Dunkin Donuts and Starbucks Dunkin' Donuts Starbucks Corporation Price Per Share $48.85 $53.93 Earnings Per Share $1.44 $1.81 Price to Earnings 34.0 29.8 Market Capitalization 4.5 B 78.8 B According to the information above, which company is undervalued? Why?arrow_forwardDuPont system of analysis Use the following financial information for AT&T and Verizon to conduct a DuPont system of analysis for each company. Sales Earnings available for common stockholders Total assets Stockholders' equity a. Which company has the higher net profit margin? Higher asset turnover? b. Which company has the higher ROA? The higher ROE? c. Which company has the higher financial leverage multiplier? a. Net profit margin (Round to three decimal places.) AT&T Net profit margin AT&T $164,000 13,333 403,921 201,934 Verizon Verizon $126,280 13,608 244,280 24,232arrow_forwardUse Apple’s financial statements to calculate the following ratios and summary measures for fiscal 2020 and 2019 (round to the nearest tenth). Indicate whether the ratio was more favorable in 2020 or 2019. Apple’s stock price was $115 per share on Sept. 30, 2020 and $55 on Sept. 30, 2019. Fiscal 2020 Fiscal 2019 Is the Ratio more favorable in 2020 or 2019? Return on Assetsarrow_forward
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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY