The Income statement for Travers & Co. is shown below. The firm currently has 35.0 million shares of common stock outstanding. However, an analyst has looked at the firm's outstanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the firm's adjusted number of common shares after the expected dilution is 38.5 million. INCOME STATEMENT (Millions of dollars) Total revenues - Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Common dividends Addition to retained earnings What is the firm's DPS for 2005? Net income 112 - Preferred dividends Net income available to common shareholders s 112 $3.05 O $3.13 O $2.61 O $1.79 O $2.03 What is the basic EPS? Answer the following questions about Travers & Co.'s Income statement. O $4.35 $4.68 O $4.74 $3.20 $3.65 What is the diluted EPS? O $2.91 O $4.26 O $3.65 ******* O $4.68 $1,450 1,200 O $4.25 $200 $ 175

The Income statement for Travers & Co. is shown below. The firm currently has 35.0 million shares of common stock outstanding. However, an analyst has looked at the firm's outstanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the firm's adjusted number of common shares after the expected dilution is 38.5 million. INCOME STATEMENT (Millions of dollars) Total revenues - Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Common dividends Addition to retained earnings What is the firm's DPS for 2005? Net income 112 - Preferred dividends Net income available to common shareholders s 112 $3.05 O $3.13 O $2.61 O $1.79 O $2.03 What is the basic EPS? Answer the following questions about Travers & Co.'s Income statement. O $4.35 $4.68 O $4.74 $3.20 $3.65 What is the diluted EPS? O $2.91 O $4.26 O $3.65 ******* O $4.68 $1,450 1,200 O $4.25 $200 $ 175

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Based on the corporate valuation model, SG Telecom's total corporate value is $750 million. Its balance sheet shows $100 million notes payable, $200 million of long-term debt, $40 million of common stock, and $160 million of retained earnings, with a WACC of 10%. If the company has 24 million shares of stock outstanding, what is its price per share? Your answer should be between 5.03 and 58.72, rounded to 2 decimal places, with no special characters.
A company has 60 million shares of stock outstanding with a market price per share of $50.00. The firm's balance sheet shows total assets of $4 Billion, total liabilities of $2.5 Billion and net income of $1,200 million. This firm would have a P/E ratio of .... and a Market to Book ratio of ...
In 2018, Caterpillar Inc. had about 710 million shares outstanding. Their book value was $38.0 per share, and the market price was $85.00 per share. The company's balance sheet shows that the company had $29.50 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) b. What was its market debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) c. Which measure should you use to calculate the company's cost of capital? a. Book debt-to-value ratio b. C. Markeet debt-to-value ratio Measure
The income statement for Dodson Corporation reported net income of $22,400 for the year ended December 31 before considering the following: During the year the company purchased available-for-sale securities. At year end, the fair value of the investment portfolio was $2,100 more than cost. The balance of Retained Earnings was $83,000 on January 1. . Dodson Corporation paid $9,000 in cash dividends during the year. Calculate the balance of Retained Earnings on December 31. 51,600
ViewPoints Security's financial statements, which were constructed a few days ago, report the companys has $1 million of common equity with 500,000 shares of common stock outstanding and its net income was $2.1 million. If ViewPoint's common stock currently sells for $33.60 per sahre, what are (a) P/E ratio and (b) M/B ratio?
The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share×total shares outstanding) of $1,332,000. Furthermore, the firm's income statement for the year just ended has a net income of $523,000, which is $0.251 per share of common stock outstanding. The price-earnings ratio for firms similar to Underwood Motors is 21.18. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares?
In its most recent financial statements, Nessler Inc. reported $55 million of net income and $880 million of retained earnings. The previous retained earnings were $854 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar.
Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following: a. During the year, Gympa purchased trading securities b. At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost c. The balance of Retained Earnings was $792,000 on January 1 d. Gympa paid $67,000 in cash dividends during the year. Using the above data, calculate the balance of Retained Earnings on Decemeber 31.
The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share\times total shares outstanding) of $1,358,000. Furthermore, the firm's income statement for the year just ended has a net income of $577, 000, which is $ 0.321 per share of common stock outstanding. The price - earnings ratio for firms similar to Underwood Motors is 21.33. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares?
(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.)
You are considering an investment in Roxie's Bed & Breakfast Corporation During the last year, the firm's income statement listed an addition to retained earnings of $16.20 million and common stock dividends of $1.30 million. Roxie's year-end balance sheet shows common stockholders' equity of $55.9 million with 19 million shares of common stock outstanding. The common stock's market price per share was $8.10.
In its most recent financial statements, Nessler Inc. reported $60 million of net income and $660 million of retained earnings. The previous retained earnings were $614 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $

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