Winston has $10 billion in total as- sets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? Answer Market value per share =$75 Common equity= 6,000,000 Number of share outstanding =800,000,000 Market to book ration = $75/(6,000,000/800,000,000) 6,000,000/800,000,000=.75 Market to book ration= 75/.75= 100 3-4 Price/Earnings Ratio A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0.
Additionally, there are horizontal and vertical analyses for Riordan’s balance sheet and income statement. Profitability Ratios Profitability Ratios | | 2011 | 2010 | | | | | | | | Asset Turnover | | | | | | (Net Sales/Avg. Total Assets) | 1.62 | | 66,608,660 ÷ (47,409,137 + 34,825,498 = 82,234,635 ÷ 2) 41,117,317.5 = 1.6199 or 1.62 | | | | | 1.66 | 56,534,254 ÷(34,825,498 + 33,1004,430 = 67,299,928 ÷2) 33,964,964 = 1.6644 or 1.66 | | | | | | | Profit Margin | | | 4.97% | | 3,310,662 ÷66,608,660 = 0.497 or 4.97 | (Net Income/Net Sales) | | | 4.30% | 2,430,872 ÷ 56,534,254 = 0.429 or 4.30 | | | | | | | Return on Assets | | | 8.05% | | 3,310,662 ÷ (47,409,137 + 34,825,498 = 82,234,635 ÷ 2) 41,117,317.5 = 0.805 or 8.05 | (Net Income/Avg. Total Assets) | | 7.17% | 2,430,872 ÷ (34,825,498 + 33,1004,430 = 67,299,928 ÷2) 33,964,964 = 0.071569986 or 7.17 | | | | | | | Return on Common Stockholder's Equity | | | 10.44% | | 3,310,662 ÷ (33,477,982 + 29,946,92 ÷ 2) 31,712,487 = 0.104396164 or 10.44 | (Net Income/Avg. Common Stockholder's Equity) | | | | 8.46% | 2,430,872 ÷ (29,946,92 + 27,517,328 ÷ 2) 28,732,160 = 0.84604568 or 8.46 | Solvency Ratios A formulation used to measure a company's financial risk by determining how much of the company's assets have been financed by debt.
(#6 Form B) Determining price Answer: e Diff: E EBIT = PQ - VQ - FC $95,000 = P(55,000) - (0.4)P(55,000) - $110,000 $205,000 = (0.6)(55,000)P $205,000 = 33,000P P = $6.21. . (#7 Form B) Breakeven price Answer: a Diff: E Total costs = $10,000 + $2(42,000) = $94,000. Price = $94,000/42,000 = $2.24. .
To calculate ROE divide Net Profit after Taxes by Stockholder‟s Equity. The calculation determined in 2008 that Berry‟s Bug Blasters had a 3.7% return on Stockholder‟s equity. Calculations Asset Turnovers: Asset turnovers= sales revenue/total assets Asset turnovers= 3,249,580.53/1,932,041.17 Asset Turnovers= 1.68 Profit Margin: = Profitability (net income)/revenue. =493,139.75/ 3,249,580.53 = 6.58% Return on Assets: ROA= Net Income/Total Assets ROA= 493.139.75/1,932,041.17 ROA= 25.52% ROE = Net Profit After Taxes / Stockholders' Equity ROE= 431,811.49/1,625,235.46 ROE=
d. What are the current yields and the yields to maturity in a and b? Current Yield: a. $60 / $865.81 = 6.93% b. $60 / $920.16 = 6.52% Yield to Maturity (using Financial Calculator) a. 8% b.
CASH FLOW BUDGETING ANALYSIS……………………………………….. 13 2.2. MARGINAL COST STATEMENT ANALYSIS………………………………… 13 3. CRITICAL ANALYSIS OF STATEMENTS BY JOHNSON AND KAPLAN….. 14 CALCULATIONS: 1 Travis Perkins plc | | Vertical Trend Analysis For Comprehensive Income Statement | The Group | 2008(%) | 2007(%) | Revenue | 100 | 100 | Cost of Sales | -65.45 | -65.5 | Gross Profit | 34.55 | 34.5 | Selling & Distribution Costs | -22.91 | -20.37 | Administration Expenses | -5.18 | -4.45 | Other operational income | 0.35 | 0.36 | Share of Results of Associate | -0.04 | 0 | Other | 1.77 | 0 | Operating Profit before exceptional items | 8.54 | 10.04 | Finance Income | | 0.12 | Finance Costs | -2.41 | -1.95 | Profit before tax | 6.37 | 8.2 | Tax | -1.84 | -2.52 | Profit for the year | 4.53 | 5.68 | Exceptional Items | -1.77 | 0 | Operating Profit after exceptional Items | 6.77 | 10.04 | Profit after tax (after exceptional Items) | 3.21 | 5.81 | Horizontal Trend Analysis For Comprehensive Income Statement | The Group | 2008(%) | 2007(%) | Revenue | 99.75 | 100 | Cost of Sales | 99.66 | 100 | Gross Profit | 99.9 | 100 | Selling & Distribution Costs | 112.17 | 100 | Administration Expenses | 116.15 | 100 | Other operational income | 98.25 | 100 | Share of Results of Associate | 0 | 0 | Other | 0 | 0 | Operating Profit before exceptional items | 84.87 | 100 | Finance Income | 208.11 |
B. PacifiCorp W1 | Shares | Total assets | Total liabilities | Cash & equiv. | Net debt | Net income | 312.18 | $12,521 | $9,144 | $199 | $3,700 | $252 | Book Value | EPS | Rev | Net Income | EPS | Book Value | $3,377 | $0.81 | $6,584 | $7,553 | $4,308 | $5,678 | C. Berkshire Hathaway’s market value increased $2.55 billion this indicates an expected benefit to Berkshire from the acquisition. This shows to be equity divided the extent of this benefit as a gain of $2.55 billion. The division by PacifiCorp’s 312.18 million shares outstanding or $6.95 per PacifiCorp share more than Buffett is paying indicates this is a good transaction. Berkshireis offering $5.1 billion in cash for PacifiCorp’s equity, for a per-share price of $16.34; altogether, this is a per-share expected value for PacifiCorp’s shares of $23.29.
The estimate of bad debts expense was .5% (which equals .005) of sales on account. Sales on account totaled 925,000 925,000 X .005 = 4,625 This is the uncollectible accounts expense for 2012 The entries would be Debit Bad Debt expense 4,625 Credit Allowance for Doubtful Accounts 4,625 The credit balance in Allowance for Doubtful Accounts would be: Allowance for doubtful accounts 4,725 Minus the amount wrote off 3,100 Plus the Credit Allowance of Doubtful accounts 4,625 The credit balance for Doubtful Accounts is now 6,250 2. Net realizable value of receivable at the end of 2012. Take the Beginning Accounts Receivable Balance 52,500 Add Sales on Account 925,000 Minus Collections of Account Receivables 835,000 Minus Account written off 3,100 Equals Gross Value of Accounts Receivables 139,400 Minus Credit Balance in Allowance for Doubtful Acct. 6,250 Net Realizable Balance of Accounts Receivable of 2012 133,150 B.
Winston has $10 billion in total as- sets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? Answer Market value per share =$75 Common equity= 6,000,000 Number of share outstanding You must Login to view the entire essay.
Find the real return on the following investments: Stock Nominal Return Inflation A 10% 3% B 15% 8% C -5% 2% ? Find the real return, nominal after-tax return, and real after-tax return on the following: Stock Nominal Return Inflation Tax Rate X 13.5% 5.0% 15% Y 8.7% 4.7% 25% Z 5.2% 2.5% 28% How are industry-operating differences reflected in a firm’s financial statements? week 6 Assignment