Question 2: The Method of Comparables: Dell, Inc. Here are some accounting numbers and market values (in millions) for Hewlett-Packard and Lenovo Group for 2008. These two computer manufacturers are considered to be comparables for Dell, Inc. Sales Earnings Book Value Market Value Hewlett-Packard Co. $84,229 $7,264 $38,526 $115,700 Lenovo Group Ltd. 14,590 161 1,134 6,381 a. Calculate price-to-sales, price-earnings (P/E), and price-to-book (P/B) ratios for Hewlett-Packard and Lenovo. b. Dell reported the following numbers for fiscal year 2008: $61,133 million $ 2,947 million Book value $ 3,735 million Sales Earnings Apply multiples for Hewlett-Packard and Lenovo to price Dell's 2,060 million out- standing shares. What difficulties did you encounter?

Question 2: The Method of Comparables: Dell, Inc. Here are some accounting numbers and market values (in millions) for Hewlett-Packard and Lenovo Group for 2008. These two computer manufacturers are considered to be comparables for Dell, Inc. Sales Earnings Book Value Market Value Hewlett-Packard Co. $84,229 $7,264 $38,526 $115,700 Lenovo Group Ltd. 14,590 161 1,134 6,381 a. Calculate price-to-sales, price-earnings (P/E), and price-to-book (P/B) ratios for Hewlett-Packard and Lenovo. b. Dell reported the following numbers for fiscal year 2008: $61,133 million $ 2,947 million Book value $ 3,735 million Sales Earnings Apply multiples for Hewlett-Packard and Lenovo to price Dell's 2,060 million out- standing shares. What difficulties did you encounter?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Give a summary of the different Ratio calculations for Apple Inc. and Samsung
Question: Samsung, Apple, and Google are competitors in the global marketplace. Selected data for Samsung follow. (billions of Korean won) Current Year Prior Year Cost of goods sold Operating expenses Total expenses 137,696.3 54,211.3 191,907.6 126,651.9 45,402.3 172,054.2 Review the discussion of the importance of the cost of goods sold divided by total expenses ratio in BTN. Compute the cost of goods sold to total expenses ratio for Samsung for the two years of data provided. (Record answers as percent, rounded to one decimal.)
2.62 For the period 2001–2008, the Bristol-Myers Squibb Company, Inc. reported the following amounts (in billions of dollars) for (1) net sales and (2) advertising and product promotion. The data are also in the fi le XR02062. Source: Bristol-Myers Squibb Company, Annual Reports, 2005, 2008. Year Net Sales Advertising/Promotion 2001 $16.612 $1.201 2002 16.208 1.143 2003 18.653 1.416 2004 19.380 1.411 2005 19.207 1.476 2006 16.208 1.304 2007 18.193 1.415 2008 20.597 1.550 For these data, construct a line graph that shows both net sales and expenditures for advertising/product promotion over time. Some would suggest that increases in advertising should be accompanied by increases in sales. Does your line graph support this?
Compare Income Statements and Balance Sheets of Competitors a. Following are selected income statements from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each income statement amount as a percentage of sales. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Income Statement ($ millions) Sales Pfizer Dr. Reddy's $46,136 0% $1,876 09 Cost of goods sold 11,248 0% 1,009 0% Gross profit 34,888 0% 867 0% Total expenses Net income 26,841 $8,047 0% 0% 878 $(11) 0% 0% b. Following are selected balance sheets from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each balance sheet amount as a percentage of total assets. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Balance Sheet ($ millions) Pfizer Dr. Reddy's Current assets $42,936 0% $1,448 0% Long-term assets Total assets 109,496 $152,432 0% 1,781 096 0% $3,229 09…
The table below shows the brief information of Company Lenovos. Segment Sales Profit IFE Score EFE score PC 140,620,000 28,620,000 2.9 2.5 Laptop Tablet smarphones 25,400,000 5,450,000 2.7 3.5 35,760,000 9,200,000 3.3 3.5 15,450,000 3,100,000 2.1 2.2 Based on the information provided in the Table above: i) Generate IE Matrix for company Lenovos by showing the proper calculation.
Please Correct solution with Explanation And Don`t give image format
Whats the equation to find current ratio when current assets isnt given? Also how do you find debit to equity ratio in this kind of problem?
Financial Accounting C.Mulford: Financial Statement Analysis: 35 Using DuPont Analysis to Compare Corporate Performance Exercise Using Data for Thiokol Corp. and Wyman-Gordon, Inc. Use the data provided below to compare financial performance for the two companies (amounts in millions). Thiokol $ 889.5 Wyman-Gordon $ 499.6 Sales Net income $ 51.4 $ 25.2 Total assets $ 818.3 $ 375.9 Shareholders' equity $ 447.9 $ 109.9 Using DuPont Analysis we see that, Thiokol Corp.: Return on equity Net income Sales Total assets X X Sales Total assets Shareholders' equity Financial leverage. (debt multiplier) Net margin X Asset turnover X (asset multiplier) Return on equity X
5
None
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Υ8 20Y7 20Υ6 20Y5 20Υ4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders' equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Υ4-2ΟY8 Return on total assets 28% Return on stockholders' equity 18% Times interest earned 2.7 Ratio of liabilities to stockholders' equity 0.4 Required: 1.…
What critique can be said about this?