3.4. The following information is available about Dnieper Company. Number of shares = 100,000 EBIT = $200,000 Income tax rate = 30% Price per share= $4.20 Coupon rate on bonds = 8% _Long-term debt = $1 million Find its (A) P/E ratio, (B) Interest coverage ratio, and (C) Debt ratio O a. PE Ratio = 5, Interest Coverage Ratio = 0.4, Debt Ratio = 70.42% O b. PE Ratio = 5, Interest Coverage Ratio = 2.5, Debt Ratio = 70.42% O c. PE Ratio = 0.84, Interest Coverage Ratio = 2.5, Debt Ratio = 70.42% O d. PE Ratio = 4.2, Interest Coverage Ratio = 2.5, Debt Ratio = 70.42%

3.4. The following information is available about Dnieper Company. Number of shares = 100,000 EBIT = $200,000 Income tax rate = 30% Price per share= $4.20 Coupon rate on bonds = 8% _Long-term debt = $1 million Find its (A) P/E ratio, (B) Interest coverage ratio, and (C) Debt ratio O a. PE Ratio = 5, Interest Coverage Ratio = 0.4, Debt Ratio = 70.42% O b. PE Ratio = 5, Interest Coverage Ratio = 2.5, Debt Ratio = 70.42% O c. PE Ratio = 0.84, Interest Coverage Ratio = 2.5, Debt Ratio = 70.42% O d. PE Ratio = 4.2, Interest Coverage Ratio = 2.5, Debt Ratio = 70.42%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The equity weight for the WACC calculation is __ % ? (Round to two decimal places.)
7. Determine the P/E ratio of the company ZYX if you know that the number of company's outstanding shares is 18,000,000. The current market price of the company corresponds to 588.5 per share. The company's intrinsic value is 654 per share. The expected return for investors is 8.7 %. The dividend amounts to 62.4. The EBIT in the given year corresponded to the amount of 481,530,000. a. 24.4 b. 26.6 c. 22 d. 19.7 e. 25 8. Consider the spot rate of 24.36 CZC/EUR. If we assume a payment for goods of 5.000 EUR in two months and the spot rate at that time will be 24.95 CZC/EUR. For hedging purposes, it is possible to arrange a forward on the exchange rate with a fixation of 24.7 CZC/EUR. If the company were to import goods. closing a forward would mean a profit/loss in the amount of: a. 1.250 EUR gain b. 1,700 CZC loss c. 2,950 EUR gain d. 1,250 CZC gain e. 1,250 CZC loss
Q3. ColdWell Co. have a debt-equity ratio of 0.80, total equity of $900,000, total asset turnover of 1.5, a profit margin of 9% and a net income of $100,000. Find their: a. Equity multiplier b. ROE c. ROA
Example The following data were assembled for General Stores Corporation: Equity (Market Risk) Premium: 4.9% Size Premium: 1.8% Value Premium: 3.0% Current Risk-Free Rate: 3.5% Market Beta: 1.05 Size Beta: -0.315 Value Beta: -0.224 Using the data above, estimate General Stores' cost of equity using the Fama- French Model.
ABD common stock is selling for $36.08 a share. The company has earnings per share of S.34 and a book value per share of S12.19. What is the market-to-bok ratio?
Green Fire Company has a debt-equity ratio of .75. Return on assets is 2.25 percent, and total equity is $800,000. �What is its equity multiplier? Question 5 options: 2.75 0.88 1.98 2.40 1.75
A company has a debt-to-equity ratio of 0.4. The discount rates for the company's stock and bond are 20% and 10%, respectively. Assuming a 21% income tax rate, what is the company's weighted average cost of capital (WACC)? Note: Write your answer in decimal (3 or more decimal places). For example, write 0.367 instead of 36.7%.
Following items are given for Bank of America Corp.: 1. Loans and leases outstanding 900 m 2. Total assets 1,200 m 3. Equity capital = 100 m 4. Total deposits 1,000 m 5. Nonperforming loans 50 m %3D 6. Stock price 50$ per share 7. Earnings Per Share 4$ Calculate as many of the risk measures as you can from the given data.
CO A has cash flows of $0.76 per share, earnings of $1.25 per share and 115,000 shares outstanding. Co B. is a comparable public company with a price of $60 per share, cash flows of $2.14 per share, and 510,000 shares outstanding. If Co Bis a sufficiently comparable company, what do you estimate Co B. price per share to be? Assume: Risk free rate 4% Market risk premium 7% Cost of debt 4%, beta of debt is 0. Tax rate 23%
The following were gathered for estimating the cost of equity of KKK Corporation: Return on Treasury Bonds = 4%; Return on the Market = 10%; Return on KKK Bonds = 6%. Upon analysis, you determined that the beta of KKK shares relating to the market return is 1.2 while a risk premium of 4% should be given to KKK's investors over its creditors. How much is the cost of equity using the capital asset pricing model?
klp.1
From the following, calculate the debt-equity ratio: Equity Shares Capital RO 100,000 General Reserve RO 45,000 Accumulated Profits RO 30,000 Debentures RO 75,000 Sundry creditors RO 40,000 Outstanding expenses RO 10,000

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS