Ducat Company has 2,000 outstanding shares and a Price/Earnings (P/E) ratio of $10.76. During the year Ducat had sales for $240150 that include a 30% mark up. Assume a 365 day year. Required 1: If both earnings per share and share price double next year, by how much will the P/E ratio change? Required 2: If the market price of each outstanding common share is $100, determine the Net Income of the period. $ Required 3: Ducat's Gross profit percentage is (report it as multiplied by 100 to represent it as a percentage):

Ducat Company has 2,000 outstanding shares and a Price/Earnings (P/E) ratio of $10.76. During the year Ducat had sales for $240150 that include a 30% mark up. Assume a 365 day year. Required 1: If both earnings per share and share price double next year, by how much will the P/E ratio change? Required 2: If the market price of each outstanding common share is $100, determine the Net Income of the period. $ Required 3: Ducat's Gross profit percentage is (report it as multiplied by 100 to represent it as a percentage):

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
The Price / Book ratio for Company A at the beginning of the year was 3.25x. At the end of the year, the Price / Book ratio was 2.8x and the share price had increased by 25% between the years – the share price at the end of the year was INR 125. Assuming that the P/E ratio at the beginning of the year was 10x and it had decreased to 8x at the end of the year, please calculate the Return on Equity for the year.
Credenza Industries is expected to pay a dividend of $1.50 at the end of the coming year. It is expected to sell for $61 at the end of the year. If its equity cost of capital is 9%, what is the expected capital gain from the sale of this stock at the end of the coming year? .... O A. $57.34 O B. $5.04 OC. $55.96 O D. $3.66 ..
Credenza Industries is expected to pay a dividend of $1.55 at the end of the coming year. It is expected to sell for $68 at the end of the year. If its equity cost of capital is 10%, what is the expected capital gain from the sale of this stock at the end of the coming year? OA. $63.23 OB. $4.77 O.C. $61.82 OD. $6.18
In the previous problem, suppose you believe that sales in five years will be $45.5 million and the price-sales ratio will be 2.15. What is the share price now? Previous problem You have looked at the current financial statements for J&R Homes, Co. The company has an EBIT of $3.35 million this year. Depreciation, the increase in net working capital, and capital spending were $295,000, $125,000, and $535,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 percent per year, and NWC will grow at 10 percent per year. The company has $19.5 million in debt and 400,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company’s WACC is 8.6 percent, and the tax rate is 22 percent. What is the price per share of the company’s stock?
Ten years ago, Lucas Inc. earned $0.50 per share. Its earnings this year were $5.00. What was the growth rate in earnings per share (EPS) over the 10-year period? Select one: a. 32.11% b. 25.89% c. 19.42% d. 29.78% e. 21.75%
1, Given the price-earnings ratio of 12, EPS of P2.18 and payout ratio of 75%, compute for the dividend yield. 2. A company's sales last year were 615,000 and its net income was 45,800. It has 465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage 3. Net income for 2020 was 1,825,600. In the year 2021, it decreased by 53%. Still using the 2020 net income as the base year, by 2022, net income increased by 130%. Determine the net income for 2021 and 2022, respectively 4. A company has 6,435,000 in common equity and 1,063,000 in outstanding shares. Shares sell at a price of 30.70 each. Calculate the difference of the firm's market and book values per share (2 decimal places) 5. P240,000 will be deposited in a fund at the beginning of each month for 5 years. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 ½ years…
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 8.8 %. Sales for the year were $9 million, and average asset turnover was 2.2. Average stockholders' equity was $2.9 million. Required: a. Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. b. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place. a. Margin a. Net income % b. Return on equity %
Ten years ago, Lucas Inc. earned $0.40 per share. Its earnings this year were $3.20. What was the growth rate in earnings per share (EPS) over the 10-year period? O a. 24.57% Ob. 20.81% O c. 25.99% O d. 23.11% O e. 80.00%
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million. Required: Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place.
help me answer these pleaseeeeee 1. Given a price-earnings ratio of 12, EPS of P2.18, and payout ratio of 75%, compute for the dividend yield. (use 2 decimal places for your final answer, express in percentage) 2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage 3. Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income as the base year, by 2022, net income increased by 130%. Determine the net income for 2021 and 2022, respectively. (separate the values by a comma followed by a space ", ") 4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for…