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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Chapter 14, Problem 1LIC
To determine
Assume the long run growth of Company S beginning in the year +6 will be 1% instead of 3%. With a growth rate of 1%, year +6 comprehensive income will be $2,900 million. Compute the price differential of S Company at the end of 2012.
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1. Please calculate Starbucks Debt Ratio for each year. Do we want this ratio higher or lower? Did the company's performance improve or decline over that period? (Please show work and explain)
Suppose that in 2023,
Global launched an aggressive marketing campaign that boosted 2023 sales further by 15.8%. However, their operating
margin fell from 5.76% to 3.98%. Suppose that they had no other income, interest expenses were unchanged, and taxes
were the same percentage of pretax income (26%) as in 2022.
Global Corp. initially projected the 2023 income statement shown in the following table:
a. What was Global's EBIT in 2023?
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c. If Global's P/E ratio (18.0) and number of shares outstanding (3.6 million) remained unchanged, what was Global's
share price in 2023?
Suppose a firm has had the following historic sales figures.
Year:
2016
Sales $1,420,000
2017
$1,720,000
Next year's sales
2018
2019
2020
$1,600,000 $2,010,000 $1,770,000
What would be the forecast for next year's sales using FORECAST.ETS to estimate a trend?
Note: Round your answer to the nearest whole dollar.
27
Chapter 14 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
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