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

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.
Question: What do these ratios say about a company it an automobile industry? MEASURES RATIOS 2017 2016 2015 ACTIVITY RATIOS INVENTORY TURNOVER 4.4037 3.2289 2.7986 TOTAL ASSET TURNOVER 0.4103 0.3089 0.5015 RECEIVABLES TURNOVER 23.191 20.9551 20.4567 COVERAGE RATIOS CASH COVERAGE RATIO 0.2016 2.17 -1.865 INTEREST COVERAGE RATIO -3.4649 -3.3567 -6.0296 LIQUIDITY RATIOS CURRENT RATIO 0.8561 1.0743 0.9897 QUICK RATIO 0.561 0.719 0.535 SOLVENCY RATIOS DEBT RATIO 0.8034 0.7391 0.8598 TOTAL DEBT TO EQUITY RATIO 5.4335 3.5242 6.4011 CASH PERFORMANCE RATIOS CASH RETURN TO REVENUE 0.2874 0.3279 0.3834 CASH RETURN TO ASSETS -0.002 -0.0055 -0.065 CASH RETURN TO EQUITY -0.0141 -0.0261 -0.484 PROFITABILITY RATIOS GROSS PROFIT MARGIN 0.1889 0.2285 0.2282 RETURN ON ASSET -0.0872 -0.0503 -0.1279…
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
The comparative statements of Osborne Company are presented here: [{HtmlTableOSBORNE COMPANYIncome StatementsFor the Years Ended December 312014 2013Net sales $1,895,999 $1,755,959Cost of goods sold 1,063,999 1,011,459Gross profit 832,000 744,500Selling and administrative expenses 505,459 484,459Income from operations 326,541 260,041Other expenses and losses Interest expense 23,583 21,583Income before income taxes 302,958 238,458Income tax expense 93,583 74,583Net income $209,375 $163,875\\OSBORNE COMPANYBalance SheetsDecember 31Assets 2014 2013Current assets Cash $60,100 $64,200Debt investments (short-term) 74,000 50,000Accounts receivable 123,259 108,259Inventory 127,583 117,083Total current assets 384,942 339,542Plant assets (net) 663,905 535,205Total assets $1,048,847 $874,747Liabilities and Stockholders' Equity Current liabilities Accounts payable $165,459 $150,859Income taxes payable 45,083 43,583Total current liabilities 210,542 194,442Bonds payable 234,905 214,905Total…
Identifying Comparables and Valuation using PB and PE Tailored Brands Inc.'s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector. Market Ticker Cap($ mil.) TLRD GCO ZUMZ GES ANF TLYS M 585.7 789.7 1,147,0 988.2 293.7 4,760.0 PB Forward Current PE (FY1) 1.00 9.699 1.95 14.17 2.07 13.19 1.00 19.69 1.68 11.6 0.75 5.458 EPS 5-Year Historical ROE Growth Rate (T 4Q) (0.47% 22.50% (323.73) (5.86 ) % 3.28% 13.85% (37.69% 1.90% 9.37% 6.35% 5.51% 13,93% (1.74 % 16.70% Debt-to- Equity (Prior Year) 2.53 0.13 0.00 0.56 0.25 0.00 0.74 (a) Identify a set of three companies from this list to use as comparables for estimating the equity intrinsic value of TLRD using the market multiples approach. ZUMZ, TLYS, M + (b) Assume that you use as comparables the following set of companies:…
How do I calculate brand value percentage of the Market Cap?
None
TABLE 2.5 2009-2013 Financial Statement Data and Stock Price Data for Mydeco Corp. Mydeco Corp. 2009-2013 (All data as of fiscal year end; in S million) Income Statement Revenue 2013 604.1 2009 2010 2011 2012 404.3 363.8 424.6 510.7 Cost of Goods Sold Gross Profit Sales and Marketing Administration (1883) (173.8) (206.2) (293.4) (246.8) 263.9 (102.1) (66.4) 216.0 190.0 2184 310.7 (66.7) (60.6) (27.3) (66.4) (59.1) (82.8) (59.4) (34.3) (120.8) (78.5) (38.6) Depreciation & Amortization EBIT Interest Income (Expense) (27.0) 37.5 38.4) 57.0 61.4 41.9 72.8 (33.7) 27.7 (32.9) 4.6 32.2) 9.7 (37.4) 19.6 (39.4) 33.4 (11.7) Pretax Income Income Tax (9.7) 18.0 (1.6) 3.0 (3.4) 6.3 (6.9) 12.7 Net Income 21.7 Shares eatstanding (milliona) Earnings per share 55.0 $0.33 55.0 $0.05 55.0 $0.11 55.0 $0.23 55.0 $0.39 Balance Sheet 2009 2010 2011 2012 2013 Assets Cash 48.8 68.9 69.8 86.3 69.8 28.4 77.5 76.9 85.0 Accounts Receivable 88.6 86.1 Inventory Total Current Assets Net Property, Plant & Equip.…
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.…
Please do not give solution in image format thanku
What critique can be said about this?