< >A ezto.mheducation.comM Question 12 - Midterm 1 - ConnectC Finance question | Chegg.comMidterm 1SavedHelpSave & ExitSubmitHere is a simplified balance sheet for Locust Farming:12Locust FarmingBalance Sheet($ in millions)$ 42,52846,840$ 29,75127,75614,32517,536$ 89,368Current assetsCurrent liabilitiesLong-term debtOther liabilitiesLong-term assets8 01:19:37EquityTotal$ 89,368TotalLocust has 661 million shares outstanding with a market price of $87 a share.a. Calculate the company's market value added. (Enter your answers in millions.)Market valuemillionMarket value addedmillionb. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.)Market-to-book ratioc. How much value as the company created for its shareholders as a percent of shareholders' equity, that is, the net capital contributedE.-- L. - 1- -L-.--L-I- ---n r.-1--McGrawHill< Prev12 of 19Next >Education < >A ezto.mheducation.comM Question 13 - Midterm 1 - ConnectC Get Homework Help With Chegg Study | Chegg.comMidterm 1SavedHelpSave & ExitSubmitHere are simplified financial statements for Watervan Corporation:13INCOME STATEMENT(Figures in $ millions)Net salesCost of goods soldDepreciationEarnings before interest and taxes (EBIT)Interest expenseIncome before tax$895.00755.0045.008 01:12:40$ 95.0026.00$ 69.00Taxes14.49Net income$ 54.51BALANCE SHEET(Figures in $ millions)StartofEnd ofYearYearAssetsCurrent assets$ 383$ 340Long-term assetsTotal assets286236$ 669$ 576Liabilities and shareholders' equityCurrent liabilities$ 208$ 171Long-term debtShareholders' equity122339135270Total liabilities and shareholders' equity$ 669$ 576The company's cost of capital is 8.5%.a. Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millionsrounded to 2 decimal places.)b. What is the company's return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations.Enter your answer as a percent rounded to 2 decimal places.)c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimalplaces.)d. Is the company creatina value for its shareholders?McGrawHill< Prev13 of 19Next >Education.....:

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Here is a simplified balance sheet for Locust Farming: 12 Locust Farming Balance Sheet ($ in millions) $ 42,528 46,840 Current liabilities Long-term debt Other liabilities Equity $ 29,751 27,756 14,325 17,536 $ 89,368 Current assets Long-term assets 01:19:37 Total $89,368 Total Locust has 661 million shares outstanding with a market price of $87 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market value Market value added million million b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) Market-to-book ratio

Here is a simplified balance sheet for Locust Farming: 12 Locust Farming Balance Sheet ($ in millions) $ 42,528 46,840 Current liabilities Long-term debt Other liabilities Equity $ 29,751 27,756 14,325 17,536 $ 89,368 Current assets Long-term assets 01:19:37 Total $89,368 Total Locust has 661 million shares outstanding with a market price of $87 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market value Market value added million million b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) Market-to-book ratio

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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Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands, except share information.) Net sales Net income (loss) Total assets Share information Preferred dividends 2022 Shares outstanding at year-end 67,000,000 2022: $ $1,127,000 2021: 81,486 $ 855,338 0 2021 $1,134,600 66,447 There were 75,640,000 shares outstanding at the end of 2020. (a) 838,078 68,810,000 What was the company's earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.) 0
Calculate the weights of capital components based on the book value balance sheet. weight of debt: Wd weight of preferred stock: Wp weight of total common equity: We Here is the condensed 2015 balance sheet for Skye Computer Company (in thousands of dollars): CONDENSED BALANCE SHEET FOR SKYE COMPUTER COMPANY FY2015 Current assets $2,000 Net fixed assets 3,000 Total assets $5,000 Total debt $2,100 Preferred stock 250 Common stock 1,300 Retained earnings 1,350 Total common equity $2,650 Total liabilities & equity $5,000 The firm's marginal tax rate is 35%. The firm's currently outstanding 10% annual coupon rate long-term debt sells at $1,051.11. The debt matures in 7 years. Coupon interest is paid semiannually. Skye's preferred stock pays a dividend of $3.30 per share, and its preferred stock sells for $30 per share. Skye's earnings per share…
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Lei Materials' balance sheet lists total assets of $1.05 billion, $127 million in current liabilities, $435 million in long-term debt, $488 million in common equity, and 54 million shares of common stock. If Lei's current stock price is $51.38, what is the firm's market-to-book ratio?
EV/EBITDA ratio Adler Industries has $3,125,000,000 in total assets of which cash and equivalents total $75,000,000. Its balance sheet shows $425,000,000 in current liabilities of which the notes payable balance totals $187,500,000. The firm also has $1,200,000,000 in long-term debt and $1,500,000,000 in common equity. It has 80 million shares of common stock outstanding, and its stock price is $25 per share. The firm's EBITDA totals $1,656,250,000. Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What is Adler's EV/EBITDA ratio? (Note: You may want to refer to the Summary of Ratios worksheet in Module 1 on the course's canvas website.) 9. ⠀ a. 2.00 b. 2.55 c. 3.00 d. 3.44 e. 4.00
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