Cavalier Copper shows on its most recent balance sheet $840 million in long term loans, $320 million in capital stock, $100 million in retained earnings, $100 million in net profit on its income statement and $20 million in dividends payable to stockholders. It has 1,000,000 shares outstanding with a current market value of $100/share. Assuming no other information is available or relevant, the company's total assets are $_ 1.1 _$1_ and its PE Ratio is_1.00_ its EPS is billion 37. Using the same information as in question # 36 and assuming the company discloses an additional $100 million in long term operating lease commitments with a net present value of $60 million, the company's total debt to total capital ratio should be
Cavalier Copper shows on its most recent balance sheet $840 million in long term loans, $320 million in capital stock, $100 million in retained earnings, $100 million in net profit on its income statement and $20 million in dividends payable to stockholders. It has 1,000,000 shares outstanding with a current market value of $100/share. Assuming no other information is available or relevant, the company's total assets are $_ 1.1 _$1_ and its PE Ratio is_1.00_ its EPS is billion 37. Using the same information as in question # 36 and assuming the company discloses an additional $100 million in long term operating lease commitments with a net present value of $60 million, the company's total debt to total capital ratio should be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cavalier Copper shows on its most recent balance sheet $840 million in long term loans,
$320 million in capital stock, $100 million in retained earnings, $100 million in net profit on its
income statement and $20 million in dividends payable to stockholders. It has 1,000,000
shares outstanding with a current market value of $100/share. Assuming no other
information is available or relevant, the company's total assets are $
and its PE Ratio is
1.1
billion_
, its EPS is
__$1_
1.00
37. Using the same information as in question #36 and assuming the company discloses an
additional $100 million in long term operating lease commitments with a net present value of
$60 million, the company's total debt to total capital ratio should be
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