Question

Last year XYZ company had a net profit of $6.4 million, year end total assets of...

Last year XYZ company had a net profit of $6.4 million, year end total assets of $90 million, year end total debt of $55 million, a book value per share of $6.50 and shareholders equity of $32.5 million. Based on this information, the company's earnings per share (EPS) was;

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Book value per share Shareholders equity/Number of outstanding shares
Number of outstanding shares Shareholders equity/Book value per share
Number of outstanding shares 32.5 million/6.50
Number of outstanding shares 5 million
Net profit 6.4 million
Earnings per share Net profit/Number of outstanding shares
Earnings per share 6.4 million / 5 million
Earnings per share $1.28.
Based on this information, the company's earnings per share was $1.28.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(Share value) At the end of last year a company had 12 million shares ($2.50 par...
(Share value) At the end of last year a company had 12 million shares ($2.50 par value) outstanding and total owners’ equity of $96 million. Net income in the past year was $25 million, and 11.5 million shares were outstanding on average during the year. Excel a. What is the remaining obligation, if any, of a shareholder who purchased shares from the company at $1.00 per share? b. What is the remaining obligation, if any, of a shareholder who purchased...
BFC Ltd. has the following financial information: Net Profit: $5 million; Sales: $100 million; Total Assets:...
BFC Ltd. has the following financial information: Net Profit: $5 million; Sales: $100 million; Total Assets: $50 million; Equity $22.73 Million; Earnings Per Share (EPS): $3.00; Dividends Per Share: $1.00. What is BFC’s return on equity and the estimated sustainable growth rate? In general, how would the growth rate and payout ratio of value firms be different from growth firms? Explain why.
BFC Ltd. has the following financial information: Net Profit: $5 million; Sales: $100 million; Total Assets:...
BFC Ltd. has the following financial information: Net Profit: $5 million; Sales: $100 million; Total Assets: $50 million; Equity $22.73 Million; Earnings Per Share (EPS): $3.00; Dividends Per Share: $1.00. What is BFC’s return on equity and the estimated sustainable growth rate? In general, how would the growth rate and payout ratio of value firms be different from growth firms? Explain why.
XYZ Company had $50 million in owners’ equity at the start of 2017. A million shares...
XYZ Company had $50 million in owners’ equity at the start of 2017. A million shares were outstanding then, with a price at 20% premium to book value (i.e., market value-per-share is 20% above book value-per-share). What were its market value and book value; market value-per-share and book value-per-share? XYZ earned $10 million in (after-tax) profits during 2017. What was its ROE and earnings-per-share (eps)? XYZ retained $5 million of its 2017 earnings. Suppose the company makes the same profits...
In​ 2016, the Allen Corporation had sales of $63 million, total assets of $48 ​million, and...
In​ 2016, the Allen Corporation had sales of $63 million, total assets of $48 ​million, and total liabilities of $21 million. The interest rate on the​ company's debt is 6.4 ​percent, and its tax rate is 35 percent. The operating profit margin is13 percent. a. Compute the​ firm's 2016 net operating income and net income. b. Calculate the​ firm's operating return on assets and return on equity.​ (Hint: You can assume that interest must be paid on all of the​...
The Amherst Company has a net profits of ​$88 ​million, sales of ​$124 ​million, and 2.2...
The Amherst Company has a net profits of ​$88 ​million, sales of ​$124 ​million, and 2.2 million shares of common stock outstanding. The company has total assets of ​$71 million and total​ stockholders' equity of ​$37 million. It pays ​$1.33 per share in common​ dividends, and the stock trades at $27 per share. Given this​ information, determine the​ following: a. ​Amherst's EPS. b. ​Amherst's book value per share and​ price-to-book-value ratio. c. The​ firm's P/E ratio. d. The​ company's net...
What is the growth rate of a firm whose net income last year was $10 million...
What is the growth rate of a firm whose net income last year was $10 million and whose total equity value was $200 million. This firm had earnings per share of $5 and paid out in dividends $2 per share. Using the same information as in the previous question (net income last year was $10 million, the total equity value was $200 million, and the firm had earnings per share of $5 per share). What is the current price per...
At the end of 2011, 40% of CARE Software, Inc.'s $1 million in total assets were...
At the end of 2011, 40% of CARE Software, Inc.'s $1 million in total assets were debt-financed. The company's cost of debt was 6 percent, and its cost of equity was 12 percent.2011 EBIT was $200,000, and is expected to remain constant. Income was taxed at 40 percent. The 50,000 shares of common stock outstanding had a year-end 2011 book value of $12.00 per share. The dividend payout ratio was 100%.Calculate the intrinsic value of a share of stock.
Last year XYZ (Pty) Ltd had sales of R202 601, assets of R126 178, a profit...
Last year XYZ (Pty) Ltd had sales of R202 601, assets of R126 178, a profit margin of 5.3%, and an equity multiplier of 1.3. The CFO believes that the company could reduce its assets by R20154 without affecting either sales or costs. Had it reduced its assets in this amount, and had the debt-to-asset ratio, sales and costs remained constant, by how much would the ROE have changed?
12. FTP Corp. generated $125 million in revenue last year and had a 16.0% net income...
12. FTP Corp. generated $125 million in revenue last year and had a 16.0% net income margin. The firm paid out 25.0% of its net income to shareholders in a cash dividend. FTP also repurchased 2 million shares of common stock from shareholders at a weighted average repurchase price of $9.00 per share. The firm's beginning total debt was $110 million and total ending debt was $100 million. During the year FTP paid $5 million in total interest expense. A....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT