At year-end 2525, Stockholder's Equity is $2,700 and there are 150 common shares outstanding. For 2526, sales should equal $12,960, the net profit margin (= net income + sales) is 6.90%, the payout ratio (-dividends + net income) is 30%, and no shares are issued or repurchased. If the equity price-to-book ratio at year-end 2525 is 1.35, and it moves to 1.20 at year-end 2526, what is the shareholder's annual rate of return for 2526? 16.9% 22.3% 20.3% 24.6% 27%

At year-end 2525, Stockholder's Equity is $2,700 and there are 150 common shares outstanding. For 2526, sales should equal $12,960, the net profit margin (= net income + sales) is 6.90%, the payout ratio (-dividends + net income) is 30%, and no shares are issued or repurchased. If the equity price-to-book ratio at year-end 2525 is 1.35, and it moves to 1.20 at year-end 2526, what is the shareholder's annual rate of return for 2526? 16.9% 22.3% 20.3% 24.6% 27%

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

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Helmuth Inc's latest net income was $1,500,000, and it had 225,000 shares outstanding. The company wants to pay out 45% of its income. What dividend per share should it declare? Do not round your intermediate calculations. O a. $2.31 O b. $3.24 O c. $3.00 O d. $2.28 Oe. $3.21
A company has revenues of 24 million and depreciation and amortization expenses of 9 million. Operating margin is 42%, net margin is 7%, and gross margin is 57%. It has 19 million of debt, 6 million in cash, and 11 million shares outstanding. Comparable companies are trading at An average EV/EBITDA multiple of 12. How much are this company's shares worth using relative valuation? Round to one decimal place.
Think about the information below: Capital surplus Retained earnings Common stock ($1 par valve) TOTAL OWNERS' EQUITY Dollars ($) 400,000 900,000 5,000,000 6,300,000 Shares are currently trading around $51 each. What impact would a 10% stock dividend have on the equity accounts? Provide the updated numbers for each line item following the dividend.
7. Zara Co. has a total common equity at the end of last year of $810,000 and its net income was $140,000. What was its ROE? * O a) 14.82% O b) 15.60% O c) 16.42% O d) 17.28% e) None of the above bar 0 stocks outstanding and its net income was
Assume the following information for both years: Net Profit Margin (NPM) was 4%. Interest on Long-term Debt 10% Times-Interest-earned was 5x All of the Net Income was retained and Market price for each share of common stock was as follows: January 1, 2008 - $1.253B December 31, 2008 - $1.14; January 1, 2007- $1.10; December 31, 2007 - $0.86 a. Use Altman Z-Score (for 2 years) to decide whether or not you would lend four million dollars to the above-mentioned company. Show all calculations supporting your conclusion.
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
On December 31. Sulfur Corporation has the following data available: Net Income $140,000 Interest expense 20,000 Total assets at the beginning of the year 720,000 Toital assets at the end of the year 810,000 Total common stockholders' equity at the beginning of the year 440,000 Total common stockholders' equity at the end of the year 300,000 What is return on equity? A. 32.43% B. 27.03% C. 37.84% D. 15.69%
Helmuth Inc's latest net income was $1,415,000, and it had 250,000 shares outstanding. The company wants to pay out 45% of its income. What dividend per share should it declare? Do not round your intermediate calculations. a. $3.11 Ob. $1.91 c. $5.66 Od. $8.21 O e. $2.55
Ef 234.
Brehm Holdings recently reported a return on common shareholders' equity of 11.47 % . What was the company's preferred dividends if net income was $550,000 during the year, beginning common shareholders' equity was $3,852, 000, and ending common shareholders' equity was $3,974,000? Select answer from the options below $13,993.40 $94, 182.20 $108, 175.60 $101, 178.90
Company ABC has a market capitalization of $750 million, Book Value (Shareholder’s Equity) Per share of $15 and net income of $25 million. If the stock is currently trading at $30. The Return on Equity is: 3.3% 6.7% 9.3% 50.0%
Consider the following data: Amount ($) 400,000 900,000 Retained earnings 5,000,000 TOTAL OWNERS’ EQUITY 6,300,000 Common stock ($1 par value) Capital surplus Current market price of shares = $51 per share. What will be the effect of a 10% stock dividend on the equity accounts? Supply the revised figures for all line items after the dividend.

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