Columbus Corp. had $410,000 additions to retained earnings for the year. The firm paid out $190,000 in cash dividends, and it has ending total equity of $6.7 million. The company currently has 210,000 shares of common stock outstanding and the stock currently sells for $75 per share. What is the PE ratio? Round it to two decimal places.

Columbus Corp. had $410,000 additions to retained earnings for the year. The firm paid out $190,000 in cash dividends, and it has ending total equity of $6.7 million. The company currently has 210,000 shares of common stock outstanding and the stock currently sells for $75 per share. What is the PE ratio? Round it to two decimal places.

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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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.
The newspaper reported last week that Bennington Enterprises earned $18.5 million this year. The report also stated that the firm's ROE is 17 percent. Bennington retains 85 percent of its earnings. a. What is the firm's earnings growth rate? (Round the answer to 2 decimal places.) Earnings growth rate % b. What will next year's earnings be? (Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.) $ Next year's earnings
Hendo Inc. is constructing its pro forma financial statements for this year. At years end, Assets were $650,000 and Accounts Payable (the only liabilities account) was $175,000. Sales for the year were $825,000. Hendo expects to grow by 12% this year. Assets and Accounts Payable are expected to grow proportionally to Sales. Common Stock currently equals $175,000 and Retained Earnings are $127,000. Hendo plans to sell $18,000 of new common stock this year. The firm's profit margin on Sales is 5.5%, and 45% of its earnings will be paid out in dividends. How much NEW long-term debt financing will Hendo need this year to finance its expected growth? Hendo is currently operating at full capapcity.
American Health Systems currently has 6,200,000 shares of stock outstanding and will report earnings of $22 million in the current year. The company is considering the issuance of 1,900,000 additional shares, which can only be issued at $16 per share. a. Assume that American Health Systems can earn 9 percent on the proceeds. Calculate earnings per share. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Earnings per share b. Should the new issue be undertaken based on earnings per share? Yes O No
Griffins Goat Farm, Inc., has sales of $670,000, costs of $332,000, depreciation expense of $76,000, interest expense of $48,000, a tax rate of 23 percent, and paid out $45,000 in cash dividends. The firm has 27,800 shares of common stock outstanding. a. What are the earnings per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What are the dividends per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Earnings per share b. Dividends per share
A company had total revenues of $59 million, operating margin of 35.1%, and depreciation and amortization expense of $13 million over the trailing twelve months. The company currently has $280 million in total debt and $116 million in cash and cash equivalents. The company's shares are currently trading at $33.2 per share and there are 13 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place.
ViewPoints Security's financial statements, which were constructed a few days ago, report the companys has $1 million of common equity with 500,000 shares of common stock outstanding and its net income was $2.1 million. If ViewPoint's common stock currently sells for $33.60 per sahre, what are (a) P/E ratio and (b) M/B ratio?
The Castle Company recently reported net profits after taxes of $14.7 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $121 per share. Compute the stock's earnings per share (EPS). Round the answer to two decimal places.$_______________per share What's the stock's P/E ratio? Round the answer to two decimal places.$______________ times Determine what the stock's dividend yield would be if it paid $6.9 per share to common stockholders. Round the answer to two decimal places._______________ %
In its most recent financial statements, Nessler Inc. reported $55 million of net income and $880 million of retained earnings. The previous retained earnings were $854 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar.
McDonnell-Myer Corporation reported net income of $1,450 million. The company had 469 million common shares outstanding at January 1 and sold 42 million shares on February 28. As part of an annual share repurchase plan, 6 million shares were retired on April 30 for $32 per share. Calculate McDonnell-Myer's earnings per share for the year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
ABC Company had addition to retained earnings for the current fiscal year just ended of $395,000. The firm paid out $195,000 in cash dividend, and it has ending total equity of $5.3 million. The company currently has 170,000 shares of common stock outstanding. Please answer the following questions: What are earnings per share (E/PS)? Dividends per share? Book value of share? If the stock currently sells for $64 per share, what is the market-to-book ratio? The price to earnings ratio (P/E)? The company had sales of $5.15 million, what is the price to sales ratio (P/S)? Finally, explain the implication of P/E ratio for different types of investors.

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