Here is a simplified balance sheet for Locust Farming:Locust FarmingBalance Sheet(S in millions)Current assets S 42, 526 Current liabilities $ 29,753Long term assets 46,836 Long-term debt 27,754Other liabilities 14,321Equity 17,534Total S 89, 362 Total S 89, 362Locust has 659 million shares outstanding with a market price of $85 ashare.Calculate the company's market value added.Calculate the market-to-book ratio.How much value has the company created for its shareholders as apercent of shareholders' equity, that is, as a percent of the net capitalcontributed by shareholders?

Step 1: Calculate the market value of equity (market capitalization).• Formula: Market value of…

Answered: Here is a simplified balance sheet for…

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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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?
You are given the following cash flow information for Project A TV Inflows Year 0 PV Outflows -$150,000.00 1 Project A -$150,000.00 $80,000.00 -$25,000.00 $50,000.00 2 $80,000.00 -$30,000.00 $75,000.00 Totals 3 4 5 6 O 19.33% $75,000.00 Now assume that the project's cost of capital is 16.0 percent, but that its true reinvestment rate is 24.0 percent. Given this information, determine the project's modified internal rate of return (MIRR). Ⓒ 18.56% 5 pts
A company has a reported net income of RM12 million and 60million shares outstanding.a) Estimate the stock’s market price if the price earning (P/E)ratio is 14.0b) What is the company’s value by market capitalization?
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…
(Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share x total shares outstanding) of $1,381,000. Furthermore, the firm's income statement for the year just ended has a net income of $565,000, which is $0.265 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 19.57. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares? a. What price would you expect Underwood Motors shares to sell for? The market price per share is $ (Round to the nearest cent.)
On the balance sheet of Bearcat Inc., you notice "Common Stock ($0.10 par)" of $248,655, "Capital Surplus" of $282,621, and "Retained Earnings" of $210,534. If Bearcat Inc. has Sales of $292,6836 and a profit margin of 30.52%, what is the price/earnings (P/E) ratio of the firm if their stock is currently selling for $21.94 per share? O None of these options are correct 67.18 54.97 240.97 61.07 DISCL
Story Corporation had net income of $300,000 in 2018. The weighted average number of shares outstanding in 2018 was 100,000 shares. Donner Corporation's common stock is selling for $36 per share on the New York Stock Exchange. Story Corporation's price-earnings ratio is... O 10.0 times 12.0 times O 36.0 times 72.0 times
Vishnu
Raleigh Racers has $17 billion in total assets. Its balance sheet shows $3 billion in current liabilities, $5 billion in long-term debt, and $9 billion in common equity. It has 750 million shares of common stock outstanding, and its stock price is $33 per share. What is Raleigh’s market-to-book ratio? a. 1.13 b. 2.75 c. 3.67 d. 1.94 e. 1.46
The market capitalization of Morning Rose Corp. is $5,580,000 at the company's most recent trade of $9.00 per share. How many shares of stock are outstanding?
Marjorie Manufacturing's balance sheets report $250 million in total debt, $100 million in short-term investments, and $8 9 million in preferred stock. Marjorie has 13 million shares of common stock outstanding. A financial analyst estimated that Marjorie's value of operations is $900 million. What is the analyst's estimate of the intrinsic stock price per share?
companys current balance sheet shows total common equity of $5,295,000. The company has 350,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ? (Round your intermediate and final answers to two decimal places.)

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