You are given the following information for Smashville, Incorporated.$ 229,000Cost of goods sold:Investment income:Net sales:$ 2,500Operating expense:Interest expense:Dividends:Tax rate:Current liabilities:Cash:Long-tere debt:Other assets:Fixed assets:Other liabilities:Investments:Operating assets:$ 374,000$82,000$7,400$9,000Book value per shareEamings per shareCash flow per share21X$ 18,000$ 21,000$ 23,000$ 41,000$ 166,000$ 5,000$ 45,000$ 37,000During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $15,000, Calculate thebook value per share, earnings per share, and cash flow per share.Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

Book value per share is the equity available to the shareholders divided by the number of…

Answered: You are given the following information…

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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You are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: Gross margin Operating margin Return on assets Return on equity $174,000 $ 1,400 $379,000 $ 86,000 $ 7,400 8,000 $ % % % % 40% $ 21,000 $ 21,000 $ 46,000 $ 38,000 $130,000 Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) $ 3,000 $ 34,000 $ 64,000
You are given the following information for Smashville, Incorporated. $249,000 $ 2,900 $ 394,000 $ 92,000 $ 7,400 $ 13,000 Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: 21% Gross margin Operating margin Return on assets Return on equity $ 22,000 $ 21,000 $9,000 $ 37,000 $ 139,000 $ 5,000 $ 13,000. $ 49,000 Calculate the gross margin, the operating margin, return on assets, and return on equity. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. % % % %
You are given the following information for Smashville, Incorporated. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: $ 184,000 $ 1,600 $ 387,000 $ 88,000 $ 7,400 $ 6,000 21% $ 12,000 $ 21,000 Long-term debt: $ 32,000 $ 40,000 Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 125,000 $ 5,000 $ 36,000 $ 64,000 During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $19,000. At the end of the year, Smashville stock sold for $42 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Answer is not complete. Price-book ratio Price-earnings ratio Price-cash flow ratio 15.19
Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 169,000 $ 1,300 $ 282,000 $ 44,000 Book value per share Earnings per share Cash flow per share $ 7,400 $5,000 21% $ 22,000 $ 21,000 $ 92,000 $ 37,000 $ 120,000 $ 6,000 $ 33,000 $ 64,000 During the year, Smashville, Incorporated, had 20,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. $ 7.75
The Amer Company has the following characteristics: Sales 1,000 Total assets 1,000 Total debt/Total assets 35.00% Basic earning power (BEP) ratio 20.00% Tax rate 40.00% Interest rate on total debt 4,57% What is Amer's ROE? arch
The Amer Company has the following characteristics:Sales 1,000Total assets 1,000Total debt/Total assets 35.00%Basic earning power (BEP) ratio 20.00%Tax rate 40.00%Interest rate on total debt 4.57%What is Amer’s ROE?
Assume you are given the following relationships for the Haslam Corporation:Sales/total assets 1.2Return on assets (ROA) 4%Return on equity (ROE) 7%Calculate Haslam’s profit margin and liabilities-to-assets ratio. Suppose half its liabilities are in the form of debt. Calculate the debt-to-assets ratio.
The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales Costs Taxable income Taxes (24%) Net income $ 3,500 2,500 $1,000 240 $760 Multiple Choice What is the external financing needed $1,730.00 $905.00 Current assets Fixed assets $1,472.50 Total $1,522.50 Balance Sheet Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent. $ 3,900 5,300 $ 9,200 Current liabilities Long-term debt Equity Total $ 830 3,620 4,750 $ 9,200 X
Given the following information: $8 million $10 million $7 million $3 million Average Inventory: $6 million Average A/R: Average Fixed Assets: Accounts Payables:$4 million Revenues: $2 million Liabilities: Total Expenses: Cost of Goods Sold: $10 million Assume no other assets or liabilities exist beyond what is articulated above. a. Compute Net Profit Margin b. Compute Total Asset Turnover c. Compute Return on Equity (ROE) d. Compute Inventory Turnover e. How much equity would have to be swapped out for debt to increase ROE by 1% assuming that nothing else changes? f. What is the firm's sustainable growth rate if dividends are equal to $0.5 million?
Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate 35.00% Revenue / Assets 1.80 times Current Ratio 2.40 times EBT / EBIT 0.80 times Assets / Equity 1.90 times Smith Brothers, Inc.'s return on assets (ROA) is closest to: A. 14.04%. B. 14.82%. C. 24.71%. D. 26.68%.
You are given the following information for Smashville, Inc. Cost of goods sold: $259,000 Investment income: $3,100 Net sales: $402,000 Operating expense: $94,000 Interest expense: $7,400 Dividends: $11,000 Tax rate: 21 % Current liabilities: $20,000 Cash: $21,000 Long-term debt: $7,000 Other assets: $39,000 Fixed assets: $134,000 Other liabilities: $5,000 Investments: $15,000 Operating assets: $26,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share
You are given the following information for Smashville, Inc. Cost of goods sold: $175,000 Investment income: $2,800 Net sales: $237,000 Operating expense: $42,000 Interest expense: $7,400 Dividends: $10,000 Tax rate: 21 % Current liabilities: $18,000 Cash: $21,000 Long-term debt: $10,000 Other assets: $36,000 Fixed assets: $89,000 Other liabilities: $5,000 Investments: $12,000 Operating assets: $24,000 During the year, Smashville, Inc., had 5,000 shares of stock outstanding and depreciation expense of $20,000. At the end of the year, Smashville stock sold for $57 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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