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The following information pertains to Concord Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets: Cash and short-term investments Accounts receivable (net) Inventory 17,000 $38,000 30,000 Property, plant, and equipment215,000 Total Assets $300,000 Liabilities and Stockholders' Equity: Current liabilities Long-term liabilities $58,000 91,000 Stockholders' equity-common 151,000 Total Liabilities and Stockholders' Equity Income Statement: Sales revenue $80,000 Cost of goods sold 47,000 Gross margin 33,000 Operating expenses 19,000 Net income $14,000 Number of shares of common stock 4,000 Market price of common stock $21 Dividends per share on common stock 0.90 Cash provided by operations $27,000 $300,000 What is the price-earnings ratio for this company? The EPS (earnings per share) of Dominica Inc. is Rs. 120. If the average Price-Earnings ratio of comparable firms is 39.2, estimate the value of Dominica's share.

The following information pertains to Concord Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets: Cash and short-term investments Accounts receivable (net) Inventory 17,000 $38,000 30,000 Property, plant, and equipment215,000 Total Assets $300,000 Liabilities and Stockholders' Equity: Current liabilities Long-term liabilities $58,000 91,000 Stockholders' equity-common 151,000 Total Liabilities and Stockholders' Equity Income Statement: Sales revenue $80,000 Cost of goods sold 47,000 Gross margin 33,000 Operating expenses 19,000 Net income $14,000 Number of shares of common stock 4,000 Market price of common stock $21 Dividends per share on common stock 0.90 Cash provided by operations $27,000 $300,000 What is the price-earnings ratio for this company? The EPS (earnings per share) of Dominica Inc. is Rs. 120. If the average Price-Earnings ratio of comparable firms is 39.2, estimate the value of Dominica's share.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information pertains to Concord Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets: Cash and short-term investments Accounts receivable (net) Inventory 17,000 $38,000 30,000 Property, plant, and equipment215,000 Total Assets $300,000 Liabilities and Stockholders' Equity: Current liabilities Long-term liabilities $58,000 91,000 Stockholders' equity-common 151,000 Total Liabilities and Stockholders' Equity Income Statement: Sales revenue $80,000 Cost of goods sold 47,000 Gross margin 33,000 Operating expenses 19,000 Net income $14,000 Number of shares of common stock 4,000 Market price of common stock $21 Dividends per share on common stock 0.90 Cash provided by operations $27,000 $300,000 What is the price-earnings ratio for this company? The EPS (earnings per share) of Dominica Inc. is Rs. 120. If the average Price-Earnings ratio of comparable firms is 39.2, estimate the value of Dominica's share.
Transcribed Image Text:The following information pertains to Concord Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets: Cash and short-term investments Accounts receivable (net) Inventory 17,000 $38,000 30,000 Property, plant, and equipment215,000 Total Assets $300,000 Liabilities and Stockholders' Equity: Current liabilities Long-term liabilities $58,000 91,000 Stockholders' equity-common 151,000 Total Liabilities and Stockholders' Equity Income Statement: Sales revenue $80,000 Cost of goods sold 47,000 Gross margin 33,000 Operating expenses 19,000 Net income $14,000 Number of shares of common stock 4,000 Market price of common stock $21 Dividends per share on common stock 0.90 Cash provided by operations $27,000 $300,000 What is the price-earnings ratio for this company? The EPS (earnings per share) of Dominica Inc. is Rs. 120. If the average Price-Earnings ratio of comparable firms is 39.2, estimate the value of Dominica's share.
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