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
Related questions
Question
See attached Income Statement and
Transcribed Image Text:BnB Construction Inc.
Income Statement (Millions of Dollars)
2021 Est.
2020
2019
Net Sales
4,000
3,000
2,850
Operating Costs
3,100
2,300
2,100
ЕBITD
900.00
700
750
Depreciation
110
100
90
Amortizaton
Depreciation and Amortization
110
100
90
EBITD
790
600
660
Interest
100
88
60
Earnings Before Taxes
690
512
600
Taxes (40%)
Net Income Before preferred Dividends
276
204.8
240
414
307.2
360
Preferred Dividends
4
4
4
Net Income
$
410.0 $
303.2 $
356.0
Common Dividends
57.5
57.5
53
Addition to retained Earnings
$
352.50 $
245.70 $
303.0
Per Share Date
2021
2020
2019
Common Stock Price
28.0
$
23.00 $
26.00
Earnings Per Share (EPS)
???
$
6.06 $
7.12
1.15 $
Dividend Per Share (DPS)
Book Value Per Share (BVPS)
????
1.06
????
$
21.72
16.80
Cash Flow Per Share
????
$
8.06 $
8.92
Transcribed Image Text:BnB Construction Inc.
Balance Sheet (Millions of Dollars)
2021
2021
Assets
2020
2019
Liabilities
2020
2019
Est
Est
Cash and Cash
15
10
15
Accounts payable
115
60
30
Equivalents
Short-Term
10
65
Overdrafts
115
110
60
investments
Accounts Receivable
420
375
315
Accruals
260
140
130
Inventories
700
615
415
Total Current Liabilities
490
310
220
Long-Term Bonds and
Total Current Assets
1,145
1,000
810
1300
754
580
New Loan
Net Plant and
1884
1,190
870
Total Debt
1790
1,064.00
800
Equipment
Preferred Stock
40
40
40
Common Stock
130
130
130
Retained Earnings
1069
956
710
Total Common Equity
1199
1086
840
$
$
$
Total Liabilities and
$
$
$
Total Assets
3,029
2,190
1,680
Equity
3,029
2,190
1,680
Est. Estimate
%24
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