None Nova Components is a manufacturer of computer parts. Thecompany recently reported earnings of $2,417,762. In addition,Nova Components has 402,500 shares issued and outstanding.The company has a PE ratio of 24.6. Nova Components is part ofthe computer parts industry which has an industry PE ratio of25.6.Using industry information, estimate the intrinsic value of NovaComponents' equity per share.A. $64.08B. $153.78C. $128.15D. $5.01

Step 1: Define Price Earnings RatioThe price-earnings ratio shows the relationship between the…

Answered: Nova Components is a manufacturer of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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What is the company's price earnings ratio on these financial accounting question?
Cleanex Ltd is a listed company that provides professional cleaning services. It has 50 million shares outstanding and a current share price of $16.00. Its book value of equity is $400 million and its earnings per share (EPS) are $1.00. Use this information to help answer the questions that follow. (a) Cleanex's market-to-book ratio is Note: Please provide your answer with two decimal points in the format of xx.xx (for example, if the answer is 1.234, type in 1.23). (b) The table below displays information relating to other firms in the cleaning industry. Ticker Earnings per Price per Share Share $52 Company WipeAway Ltd Spotless Ltd Clear Ltd WashOff Ltd RinseDown Ltd WPA SPT CLR WSO RSD $41 $63 $38 $3.50 $2.50 $4.30 $4.80 $3.80 You want to use this information to perform a relative valuation of Cleanex's shares. Based upon the average P/E ratio for its industry, Cleanex's implied equity value per share is $ Note: Please provide your answer with two decimal points in the format of…
(Analyzing market value) The balance sheet for Leo's Discount Tire Company shows a book value of stockholders' equity (book value per share x total shares outstanding) of $23,096,000. Furthermore, the firm's income statement for the year just ended has a net income of $512,000, which is $0.242 per share of common stock outstanding. The price-earnings ratio for firms similar to Leo's Discount Tire Company is 18.39. a. What price would you expect Leo's Discount Tire Company shares to sell for? b. What is the book value per share for Leo's shares? c. What does the market price and book value per share indicate about the firm? a. What price would you expect Leo's Discount Tire Company shares to sell for? The market price per share is $ (Round to the nearest cent.)
What is the price earnings ratio on these financial accounting question?
Foraker Products is a manufacturer and distributor of numerous food products. The company has a book value of $20.68 per share. Foraker Products is part of the food processing industry which has an industry PB ratio of 2.15.Using industry information, estimate the intrinsic value of Foraker Products' equity per share?
Company X is in the household goods industry. What would be the estimated value of Company X stock using this information?
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(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.)
Gulf Controls, Inc., has a net profit margin of 10 percent and earnings after taxes of $600,000. Its current balance sheet follows: a. Calculate Gulf’s return on stockholders’ equity. b. The industry average ratios are as follows: Compare Gulf Controls with the average firm in the industry. What is the source of the major differences between the Gulf and the industry average ratios?
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