EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 3, Problem 18P
a)
Summary Introduction
To determine: Earnings per share.
a)
Expert Solution
Explanation of Solution
Calculation of EPS:
Hence, Earnings per share (EPS) is $4.20
b)
Summary Introduction
To determine: Price-to-earnings ratio.
b)
Expert Solution
Explanation of Solution
Calculation of price-to-earnings ratio:
Hence, price earnings ratio is $7.6.
c)
Summary Introduction
To determine: Book value per share.
c)
Expert Solution
Explanation of Solution
Calculation of book value per share:
Hence, book value per share is $16
d)
Summary Introduction
To determine: Market-to-book ratio.
d)
Expert Solution
Explanation of Solution
Calculation of market-to-book ratio:
Hence, book value per share is $16
e)
Summary Introduction
To determine: EV-EBITDA multiple.
e)
Expert Solution
Explanation of Solution
Calculation of EV-EBITDA multiple:
EV is nothing but the enterprise value
Calculation of enterprise value:
Hence, enterprise value is $230 million
Calculation of EBITDA:
Hence, EBITDA is $50 million
Calculation of EV-EBITDA multiple:
Hence, EV-EBITDA multiple is 4.6 times
f)
Summary Introduction
To determine: Addition to
f)
Expert Solution
Explanation of Solution
Calculation of additions to retained earnings:
Hence, additions to retained earnings are $11million.
g)
Summary Introduction
To construct: New balance sheet of Company E.
g)
Expert Solution
Explanation of Solution
Excel spreadsheet:
Excel workings:
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Students have asked these similar questions
Given the following information for the Vanderbilt Tire Company, find ROA (Return on Assets): Debt ratio (D/A) = 0.33 (expressed as a decimal) Total asset turnover ratio (S/A) = 1.88 Sales (S) = $10,000 Net profit margin = 0.08 (expressed as a decimal)
Required:
(a) You are required to calculate the following ratios:(i) Gross profit margin(ii) Operating profit margin(iii) Expenses to sales(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover
(b) In light of your calculations comment on the performance of the company over thelast two years.
The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows:
LOADING...
.
Calculate the following ratios:
Current ratio
Times interest earned
Inventory turnover
Total asset turnover
Operating profit margin
Operating return on assets
Debt ratio
Average collection period
Fixed asset turnover
Return on equity
J. P. Robard Mfg., Inc.
Balance Sheet ($000)
Cash
$500
Accounts receivable
1,900
Inventories
1,020
Current assets
$3,420
Net fixed assets
4,540
Total assets
$7,960
Accounts payable
$1,150
Accrued expenses
570
Short-term notes payable
260
Current liabilities
$1,980
Long-term debt
1,910
Owners' equity
4,070
Total liabilities and owners' equity
$7,960
(Click
on the icon
in order to copy its contents into a
spreadsheet.)
J. P. Robard Mfg., Inc.
Income Statement ($000)
Net sales (all credit)
$8,040
Cost of goods…
Chapter 3 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Ch. 3 - Prob. 1QTDCh. 3 - Prob. 2QTDCh. 3 - Prob. 3QTDCh. 3 - Prob. 4QTDCh. 3 - Prob. 5QTDCh. 3 - Prob. 6QTDCh. 3 - Prob. 7QTDCh. 3 - Prob. 8QTDCh. 3 - Prob. 9QTDCh. 3 - Prob. 10QTD
Ch. 3 - Prob. 11QTDCh. 3 - Prob. 12QTDCh. 3 - Prob. 13QTDCh. 3 - Prob. 14QTDCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21P
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Similar questions
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