Question

Use Income statement shown below and calculate : Current Market cap, PE ratio, Earnings per share,...

  1. Use Income statement shown below and calculate : Current Market cap, PE ratio, Earnings per share, Dividend yield ,PEG ratio and PEGY ratio

Total Revenue

25,878,372  

Cost of Revenue

18,521,400  

Gross Profit

7,356,972  

Operating Expenses

Research Development

-

Selling General and Administrative

4,250,446  

Non Recurring

-

Others

-

Total Operating Expenses

-

Operating Income or Loss

3,106,526  

Income from Continuing Operations

Total Other Income/Expenses Net

-

Earnings Before Interest And Taxes

3,106,526  

Interest Expense

29,175  

Income Before Tax

3,077,351  

Income Tax Expense

1,170,664  

Minority Interest

-

Net Income From Continuing Ops

1906687

Net Income

1,906,687  

Current Outstanding shares

4,800,000

Expected Earnings growth %

                           12.00 %

Dividend $ per share

$ 1.5

Current stock price

$ 50

CALCULATE

Current Market Cap

?

Each ? is 5 points

EPS

?

Dividend yield

?

PE ratio

?

PEG ratio

?

PEGY ratio

?

Homework Answers

Answer #1

1) Current market cap= no. of outstanding shares * current stock price

= 4,800,000 * $50

= $240,000,000

2) EPS= Current earnings / number of shares

= 1,906,687 / 4,800,000

= 0.39722

3) dividend yield= dividend per share / price pre share

= 1.5 / 50

= 3%

4) PE ratio = Price per share / Earnings per share

= 50 / 0.3972

= 125.87

5) PEG ratio = P/E ratio /Growth rate

= 125.87 / 12

= 10.49

6) PEGY ratio= PE ratio / (Earnings growth rate + dividend yield)

= 125.88 / (12% + 3%)

= 125.88 / 15

= 8.392

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