Comment on whether or not if the ratios are favourable or unfavourableReturn on Capital Employed 20162017201820192020BHP10.19%12.03%17.24%19.63%17.65%RIO9.63%15.36%15.96%20.46%20.43%FMG11.34%20.40%11.28%28.28%33.55%

ROCE is a long term profitability ratio. ROCE shows how effectively assets of a company is utilized…

Answered: Comment on whether or not if the ratios…

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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What do these numbers say about the company?
Debt Ratio Equity Ratio EPS DPS Stock Price 30% 70% 1.55 0.34 22.35 40% 60% 1.67 0.45 24.56 50% 50% 1.72 0.51 25.78 60% 40% 1.78 0.57 27.75 70% 30% 1.84 0.62 26.42 Which capital structure shown in the preceding table is Universal Exports Inc.’s optimal capital structure? Globex Corp. has a capital structure that consists of 40% debt and 60% equity. The firm’s current beta is 1.10, but management wants to understand Globex Corp.’s market risk without the effect of leverage. If Globex Corp. has a 25% tax rate, what is its unlevered beta?
Sector Basic Materials Consumer Cyclicals Financials Real Estate Communication Servic FAKEX Weight Energy Industrials Technology Consumer Defensive Healthcare Utilities 5.81% 13.45% 21.89% 6.98% 1.32% Russell 2000 Portfolio Sector Russell 2000 Return Return Index Return Index 4.32% 11.82% 7.84% 7.84% 4.63% 9.98% 9.48% 11.71% 32.36% 8.91% 4.29% 10.42% 2.33% 1.20% 7.84% 0.67% -27.89% -24.51% 5.87% -12.43% -16.44% 12.67% 14.32% 17.00% 10.35% 16.34% 10.74% 2.81% 5.63% -0.91% 4.27% 10.43% 26.63% 5.97% 7.35% 13.85% 6.43% 17.43% 4.53% 11.78% 6.15% 4.23% 100.00% Consider the Interaction Effect using only the Technology Sector in the data presented above. Which statement below are true? (Select all that apply) 7.84% 7.84% 7.84% 7.84% 7.84% 7.84% 7.84% 7.84% The Interaction Effect for the Technology Sector was negative ✔ The Interaction Effect for the Technology Sector was positive O Under-weighting the Technology Sector was a good idea since the Sector was beaten by many other sectors…
YYYYMM Return(Stk1) Return(Stk2) Return(Market) Return(T-bill) 201701 7.75% 3.00% 6.18% 0.20% 201702 1.27% 2.12% 1.63% 0.20% 201703 7.63% 1.50% 1.56% 0.15% 201704 9.25% -1.01% 2.09% 0.30% 201705 10.20% 2.66% 4.25% 0.30% 201706 4.33% 2.59% 0.41% 0.30% 201707 12.25% 10.41% 6.05% 0.35% 201708 4.98% -2.94% 2.37% 0.45% 201709 2.19% -1.69% -1.49% 0.20% 201710 4.05% 3.43% 2.51% 0.20% 201711 13.78% 8.29% 3.30% 0.15% 201712 2.01% 1.96% 2.54% 0.30% 201801 14.19% 23.60% 9.92% 0.30% 201802 -6.77% -4.18% -6.21% 0.55% 201803 -5.23% -10.14% -2.44% 0.60% 201804 -4.54% 1.93% 2.38% 0.20% 201805 2.32% -1.32% -1.10% 0.20% 201806 -1.35% -7.01% -4.97% 0.15% 201807 -9.80% -1.86% -1.29% 0.30% 201808 -4.28% -1.95% -2.43% 0.30% 201809 -4.94% 0.27% -0.36% 0.75% 201810 -17.39% -7.14% -10.11% 0.30% 201811 16.85% 9.62% 6.11% 0.55% 201812 0.64% -0.61% -2.49% 0.60% 201901 10.19% 7.68% 8.11% 0.20% 201902 -2.95% 10.90% 2.47% 0.20% 201903 7.50% 2.26% 1.46% 0.20%…
Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA for Texas Roadhouse for 2016 through 2019. a. Forecast the terminal period values assuming a 1% terminal period growth rate for all three model inputs: Sales, NOPAT, and NOA. Round your answers to the nearest dollar. Reported Forecast Horizon Terminal $ thousands 2015 2016 2017 2018 2019 Period Sales $1,807,368 $2,078,473 $2,390,244 $2,581,464 $2,787,981 Answer NOPAT 102,495 170,435 196,000 211,680 228,614 Answer NOA 662,502 761,904 876,189 946,284 1,021,987 Answer b. Estimate the value of a share of TXRH common stock using the discounted cash flow (DCF) model as of December 29, 2015; assume a discount rate (WACC) of 7%, common shares outstanding of 70,091 thousand, net nonoperating obligations (NNO) of $(14,680) thousand, and noncontrolling interest (NCI) from the balance sheet of $7,520 thousand. Note that NNO is negative because the company’s cash exceeds its…
TABLE 7.7 Financlal projoctions for Prairie Home Stores, 2016-2021 (figures in millions) 2016 2017 2018 2019 2020 2021 Rapid-Growth Scenario Book valuo, start of year S80 $ 92 $105.8 $121.7 $139.9 $146.9 Earnings 12 13.8 15.9 18.3 21.0 22.0 14 14.7 Dividonds 12 13.8 15.9 18.3 7.0 7.4 Rotainod earnings Book value, and of yoar 92 105.8 121.7 139.9 146.9 154.3 Constant-Growth Scenario Book value, start of year $80 $84 $88.2 $92.6 $ 97.2 $102.1 Earnings 12 12.6 13.2 13.9 14.6 15.3 Dividonds 8. 8.4 8.8 9.3 9.7 10.2 Rotainod earnings 4 4.2 4.4 4.6 4.9 5.1 Book value, end of year 84 88.2 92.6 97.2 102.1 107.2 Notos: 1 Both panels assumo oarnings oqual to 15% of start-of-yoar book valuo. This proftability rato is constant. 2 Tho top panol assumos afl carnings aro reinvosted from 2016 to 2019. In 2020 and lator yoars, two-thirds of oarnings aro paid out as dividends and one-third roinvosted. 3. Tho botlom panel assumos two-thirds of oarnings aro paid out as dividends in all yoars. 4. Columna…
Which of the following is not true? Firm A Firm B Industry Benchmark 2018 2019 2020 2018 2019 2020 2018 2019 2020 ROA 9.14% 9.50% 9.90% 8.11% 8.16% 8.19% 8.11% 8.14% 8.15% ROE 22.45% 22.95% 23.45% 19.65% 19.88% 20.12% 19.95% 20.55% 21.00% TIE 1.75 1.65 1.55 2.75 2.90 3.05 2.25 2.30 2.50 CR 3.25 3.66 3.75 2.55 2.65 2.75 2.40 1.45 2.50 EPS 1.90 2.10 2.25 1.55 1.65 1.75 1.52 1.55 1.60 A Based on ROA, Firm A is doing better than Firm B and the Industry benchmark. B Based on Times Interest Earned, Firm A is doing better than Firm B and the Industry benchmark. C Based on ROE, Firm A is doing better than Firm B and the Industry benchmark. D Based on current ratio, Firm B is doing better than the Industry benchmark.
Why did Estee Lauder greatly increase the payout ratio in 2020 when the pandemic broke out. Why Did it decrease its payout ratio dramatically in 2021

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*Return on Capital Employed*
	2016	2017	2018	2019	2020
BHP	10.19%	12.03%	17.24%	19.63%	17.65%
RIO	9.63%	15.36%	15.96%	20.46%	20.43%
FMG	11.34%	20.40%	11.28%	28.28%	33.55%

Comment on whether or not if the ratios are favourable or unfavourable Return on Capital Employed 2016 2017 2018 2019 2020 BHP 10.19% 12.03% 17.24% 19.63% 17.65% RIO 9.63% 15.36% 15.96% 20.46% 20.43% FMG 11.34% 20.40% 11.28% 28.28% 33.55%