! Required information Khaki Republic sells clothing and accessories through premium outlet locations and online. Selected financial data for Khaki Republic is provided as follows: ($ in millions) Sales. Net income Stockholders' equity, beginning Stockholders' equity, ending Average shares outstanding Dividends per share Stock price, ending $3,740 $220 $1,770 $2,230 105 $0.60 $46.45 2. Compare each ratio for Khaki Republic to Zoom and Microsoft reported in the chapter, select the appropriate company for each of the following: a. Which company's return on equity shows the highest return to shareholders? b. Which company's dividend yield shows the highest amount paid to shareholders? c. Which company's price-earnings ratio is most likely to reflect high growth expectations by investors?

! Required information Khaki Republic sells clothing and accessories through premium outlet locations and online. Selected financial data for Khaki Republic is provided as follows: ($ in millions) Sales. Net income Stockholders' equity, beginning Stockholders' equity, ending Average shares outstanding Dividends per share Stock price, ending $3,740 $220 $1,770 $2,230 105 $0.60 $46.45 2. Compare each ratio for Khaki Republic to Zoom and Microsoft reported in the chapter, select the appropriate company for each of the following: a. Which company's return on equity shows the highest return to shareholders? b. Which company's dividend yield shows the highest amount paid to shareholders? c. Which company's price-earnings ratio is most likely to reflect high growth expectations by investors?

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1WT

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Required information
Khaki Republic sells clothing and accessories through premium outlet locations and online. Selected financial data for
Khaki Republic is provided as follows:
($ in millions)
Sales
Net income
Stockholders' equity, beginning
Stockholders' equity, ending.
Average shares outstanding
Dividends per share
Stock price, ending
$3,740
$220
$1,770
$2,230
105
$0.60
$46.45
2. Compare each ratio for Khaki Republic to Zoom and Microsoft reported in the chapter, select the appropriate company for each of
the following:
a. Which company's return on equity shows the highest return to shareholders?
b. Which company's dividend yield shows the highest amount paid to shareholders?
c. Which company's price-earnings ratio is most likely to reflect high growth expectations by investors?

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Identifying Comparables and Valuation using PB and PETailored Brands Inc.’s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector. Ticker MarketCap($ mil.) PBCurrent ForwardPE (FY1) EPS 5-YearHistoricalGrowth Rate ROE(T 4Q) Debt-to-Equity(Prior Year) TLRD -- -- -- (0.47)% 22.50% 2.53 GCO 585.7 1.00 9.699 (323.73)% (5.86)% 0.13 ZUMZ 789.7 1.95 14.17 3.28% 13.85% 0.00 GES 1,147.0 2.07 13.19 (37.69)% 1.90% 0.56 ANF 988.2 1.00 19.69 9.37% 6.35% 0.25 TLYS 293.7 1.68 11.6 5.51% 13.93% 0.00 M 4,760.0 0.75 5.458 (1.74)% 16.70% 0.74 (a) Assume that you use as comparables the following set of companies: ZUMZ, TLYS, and M. Estimate TLRD’s equity intrinsic value using the PB ratio from these peer companies. (Round average PB ratio to two decimal places…
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