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
Related questions
Question
Based on the information above, what is P/E ratio of the firm?
Group of answer choices
12
14
13
15
Transcribed Image Text:**Great Inc. Financial Overview**
The balance sheet and income statement presented are for Great Inc., noting the firm has no amortization charges, does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
### Balance Sheet (Millions of $)
**Assets (2016)**
- Cash and Securities: $1,554.0
- Accounts Receivable: $9,660.0
- Inventories: $13,440.0
- **Total Current Assets:** $24,654.0
- Net Plant and Equipment: $17,346.0
- **Total Assets:** $42,000.0
**Liabilities and Equity (2016)**
- Accounts Payable: $7,980.0
- Notes Payable: $5,880.0
- Accruals: $4,620.0
- **Total Current Liabilities:** $18,480.0
- Long-term Bonds: $10,920.0
- **Total Liabilities:** $29,400.0
- Common Stock: $3,360.0
- Retained Earnings: $9,240.0
- **Total Common Equity:** $12,600.0
- **Total Liabilities and Equity:** $42,000.0
### Income Statement (Millions of $)
**For 2016:**
- Net Sales: $58,800.0
- Operating Costs (excluding Depreciation): $54,978.0
- Depreciation: $1,029.0
- **Earnings Before Interest and Taxes (EBIT):** $2,793.0
- Less Interest: $1,050.0
- **Earnings Before Taxes (EBT):** $1,743.0
- Taxes: $610.1
- **Net Income:** $1,133.0
### Other Data
- Shares Outstanding (millions): 150.0
- Common Dividends: $509.83
- Interest Rate on Notes Payable & Long-term Bonds: 6.25%
- Federal plus State Income Tax Rate: 35%
- Year-end Stock Price: $105.75
This data provides a comprehensive snapshot of Great Inc.'s financial position for the year 2016, highlighting both asset utilization and equity distribution, as
Expert Solution
Relevant Inputs
Stock Price = 105.75
Net Income = 1133
Number of shares outstanding = 150
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