2. The following question is adapted from Financial
Management for Executives (2nd ed.): The following data...
2. The following question is adapted from Financial
Management for Executives (2nd ed.): The following data
pertain to the PepsiCo, Inc. Using this data, calculate the
following ratios for years 1 and 2 for PepsiCo: Price-earnings
ratio, Dividend yield, and Dividend payout ratio.
Year 1 Year 2
Earning per share.………………………$3.48 $3.42
Stock price.........................……………77.03 62.55
Dividends per share .....……..…………1.42 1.16
Neil is evaluating a Parrott Inc using dividend discount model.
He has analyzed past dividends, earnings...
Neil is evaluating a Parrott Inc using dividend discount model.
He has analyzed past dividends, earnings per share and payout
ratios and has summarized the following info: Most recent dividend
was $1.94 per share Most recent EPS was $6.45 EPS growth is 8% per
year Dividend payout is stable at 30% Beta is 2.3 Risk free rate is
1.8% Market risk premium is 6.1%. What is the fair price for this
stock?
EPS, P/E Ratio, and Dividend Ratios
The Stockholders' Equity section of the balance sheet for
Obregon,...
EPS, P/E Ratio, and Dividend Ratios
The Stockholders' Equity section of the balance sheet for
Obregon, Inc. at the end of 2017 appears as follows:
8%, $100 par, cumulative preferred stock, 200,000
shares authorized, 50,000 shares issued and outstanding
$5,000,000
Additional paid-in capital on preferred
2,500,000
Common stock, $5 par, 500,000 shares authorized,
400,000 shares issued and outstanding
2,000,000
Additional paid-in capital on common
18,000,000
Retained earnings
37,500,000
Total stockholders' equity
$65,000,000
Net income for the year was $1,240,000. Dividends...
6. Market value ratios
Ratios are mostly calculated using data drawn from the financial
statements of...
6. Market value ratios
Ratios are mostly calculated using data drawn from the financial
statements of a firm. However, another group of ratios, called
market value ratios, relate to a firm’s observable market value,
stock prices, and book values, integrating information from both
the market and the firm’s financial statements.
Consider the case of Cute Camel Woodcraft Company:
Cute Camel Woodcraft Company just reported earnings after tax
(also called net income) of $9,250,000 and a current stock price of
$39.50...
Ratios are mostly calculated using data drawn from the financial
statements of a firm. However, another...
Ratios are mostly calculated using data drawn from the financial
statements of a firm. However, another group of ratios, called
market value ratios, relate to a firm’s observable market value,
stock prices, and book values, integrating information from both
the market and the firm’s financial statements.
Consider the case of Cold Goose Metal Works Inc.:
Cold Goose Metal Works Inc. just reported earnings after tax
(also called net income) of $9,000,000 and a current stock price of
$34.00 per share....
6. Market value ratios
Ratios are mostly calculated using data drawn from the financial
statements of...
6. Market value ratios
Ratios are mostly calculated using data drawn from the financial
statements of a firm. However, another group of ratios, called
market value ratios, relate to a firm’s observable market value,
stock prices, and book values, integrating information from both
the market and the firm’s financial statements.
Consider the case of Cute Camel Woodcraft Company:
Cute Camel Woodcraft Company just reported earnings after tax
(also called net income) of $9,750,000 and a current stock price of
$28.50...
CLASS: Using Financial Ratios
LX Inc.
Rose Co
Current assets:
Cash
$ 29,200
$ 20,500
Short-term...
CLASS: Using Financial Ratios
LX Inc.
Rose Co
Current assets:
Cash
$ 29,200
$ 20,500
Short-term investments
42,000
22,200
Current receivables, net
38,000
44,000
Inventories
67,000
105,000
Prepaid expenses
2,000
4,300
Total current assets
$178,200
$196,000
Total assets
$300,000
$272,000
Total current liabilities
$105,000
$102,000
Total liabilities
$105,000
$136,000
Common stock:
$1 par (10,000 shares)
$ 10,000
$1 par (14,000 shares)
$ 14,000
Total stockholders’ equity
$195,000
$136,000
Total Liabilities and S/E
$300,000
$272,000
Market price per share
$ 80.00
$ 85.10...