Question

**Chapter 12**

**Financial Planning Exercise 7**

**Calculating key stock performance metrics**

The Morton Company recently reported net profits after taxes of $14.7 million. It has 5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $67 per share.

- Compute the stock's earnings per share (EPS). Round the answer
to two decimal places.

$ per share - What's the stock's P/E ratio? Round the answer to two decimal
places.

$ times - Determine what the stock's dividend yield would be if it paid
$3.22 per share to common stockholders. Round the answer to two
decimal places.

%

Answer #1

The Castle Company recently reported net profits after taxes of
$10.5 million. It has 2 million shares of common stock outstanding
and pays preferred dividends of $1 million a year. The company's
stock currently trades at $57 per share.
Compute the stock's earnings per share (EPS). Round the
answer to two decimal places.
$ per share
What's the stock's P/E ratio? Round the answer to two
decimal places.
$ times
Determine what the stock's dividend yield would be if it...

The Castle Company recently reported net profits after taxes of
$14.3 million. It has 5 million shares of common stock outstanding
and pays preferred dividends of $1 million a year. The company's
stock currently trades at $30 per share.
Compute the stock's earnings per share (EPS). Round the
answer to two decimal places.
$ per share
What's the stock's P/E ratio? Round the answer to two
decimal places.
$ times
Determine what the stock's dividend yield would be if it paid
$0.84...

Chapter 12
Financial Planning Exercise 2
Calculating key financial ratios
Selected financial information about Backpacking Resources,
Inc., is as follows:
Total assets
$10,000,000
Total liabilities
$3,000,000
Total preferred stock
$500,000
Total annual preferred stock dividends
$35,000
Net profits after tax
$500,000
Number of shares of common stock outstanding
450,000 shares
Current market price of common stock
$63.00 a share
Annual common stock dividends
$4.41 a share
Using the company's financial information, compute the
following:
Dividend yield. Round the answer to...

Chapter 13
Financial Planning Exercise 9
Calculating approximate yield on mutual fund
About a year ago, Ramon Navarrete bought some shares in the
Saphire Lake Mutual Fund. He bought the fund at $25.80 a share, and
it now trades at $26.30. Last year the fund paid dividends of 51
cents a share and had capital gains distributions of $1.03 a
share.
Using the approximate yield formula, what rate of return did
Ramon earn on his investment? Round the answer to...

Chapter 11
Financial Planning Exercise 13
Interpreting stock report information
Using the S&P report in Exhibit 11.6, find
the following information for Apple. If there is no appropriate
data in the report, leave the entry field blank.
What was the amount of revenues (i.e., sales) generated by the
company in 2014?
$ million
What were the latest annual dividends per share and dividend
yield? Round to two decimal places.
$ a share
%
What were the earnings (per share)...

The Amherst Company has a net profits of $16 million, sales of
$187 million, and 3.1 million shares of common stock outstanding.
The company has total assets of $80 million and
totalstockholders' equity of $53 million. It pays $.82 per share
in common dividends, and the stock trades at $19 per share. Given
this information, determine the following: (round all to 2
decimal places) *huge thumbs up for correct answer*
a. Amherst's EPS is (blank$) ?
b.Amherst's book value per...

Assume you work for the financial research unit of an investment
bank, and you are responsible for the financial analysis of The
Monti Company. The firm has net profits of $12 million, sales of
$165 million, and 3.0 million shares of common stock outstanding.
The company has total assets of $80 million and total stockholders'
equity of $50 million. It pays $1 per share in common dividends,
and the stock trades at $25 per share. Given this information,
determine the...

Assume you work for the financial research unit of an investment
bank, and you are responsible for the financial analysis of The
Monti Company. The firm has net profits of $12 million, sales of
$165 million, and 3.0 million shares of common stock outstanding.
The company has total assets of $80 million and total stockholders'
equity of $50 million. It pays $1 per share in common dividends,
and the stock trades at $25 per share. Given this information,
determine the...

Chapter 13
Financial Planning Exercise 11
Calculating and evaluating mutual fund returns
Here is the per-share performance record of the Abacus
Growth-and-Income fund for 2017 and 2016:
2017
2016
1. Net asset value, beginning of period:
$54.65
$50.00
2. Income from investment operations:
3. Net investment income
$ 1.04
$ 0.70
4. Net gains on securities (realized and unrealized)
10.38
9.50
5. Total income from investment operations
$11.42
$10.20
6. Less distributions:
7. Dividends from net investment income
($0.47)
($0.32)...

Computing EPS: Convertible Preferred with Partial
Conversion
Bridgeman Company, headquartered in San Francisco, reported the
following data for the current year.
Net income, $2,220,000.
Common shares outstanding at the beginning of the year,
800,000.
Nonconvertible cumulative preferred stock, $100 par, $8
dividend per share per year, 100,000 shares outstanding all
year.
Issued 200,000 shares of common stock on October 1.
Convertible cumulative preferred stock, $100 par, $7 dividend
per share per year, 50,000 shares outstanding at the beginning of
the...

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