You are given the following information:Stockholder's EquityPrice/Earnings RatioShare OutstandingMarket/Book Ratio$1,2505251.5Calculate the market price of a share of the company's stock. Consider the summarized data from thebalance sheets and income statements of Wiper Inc. If Wiper's stock had a price/earnings ratio of 12 atthe end of 2020, what was the market price of the stock? Wiper Inc.Condensed Balance SheetsDecember 31, 2020, 2019, 2018 (in millions)2020 2019 2018Current assets $764 $981 $843Other assetsTotal assets2,424 1,931 1,730$3,188 $2,912 $2,573Current liabilitiesLong-term liabilitiesStockholders' equity$588 $841 $7341,582 1,034 9101,018 1,037 929Total liabilities and stockholders' equity $3,188 $2,912 $2,573Wiper Inc.Selected Income Statement and Other DataFor the year Ended December 31, 2020 and 2019 (in millions)2020 2019Income statement data:Sales $3,061 $2,924Operating income307321Interest expense9576Net income224219Other data:Average number of common shares outstanding42.4Total dividends paid $61.0 $53.447.8

Part 1: Calculating the market price of a share based on the initial given informationGiven:-…

Answered: You are given the following…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Albion Inc. provided the following information for its most recent year of operations. The tax rate is 40%. Required: 1. Compute the following: (a) return on sales, (b) return on assets, (c) return on stockholders equity, (d) earnings per share, (e) price-earnings ratio, (f) dividend yield, and (g) dividend payout ratio. 2. CONCEPTUAL CONNECTION If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain.
Stockholder Profitability Ratios The following information pertains to Montague Corporation Required: Calculate the return on common equity and the earnings per share. (Note: Round answers to two decimal places.)
Calculate the missing information for the following stock. Show your work. Company Earnings per Share Annual Dividend Current Price per Share Current Yield Price-Earnings Ratio Sampson, Inc. ? $0.39 $26.50 ? 22
Please answer probably: Calculate the following ratios for Avartar Sdn. Bhd. for years ended 31 March 2019 and 31 March2018 : 16)dividend cover 17) Price/earning ratio (share price in 2019 and 2018 is Rm 1.57 and Rm 2.09 respectively); 18) Dividend yield ( share prices after declaration or dividend in 2019 and 2018 are Rm1.35 and Rm1.80 respectively); and 19)Earnings yield (use market price per note 17) Please answer in detail. THANKSSSS
which of the below ratios can I use the attached file to calculate? return on total assets return on common stockholder's equity dividend payout ratio price-earnings ratio
Computing earnings per share, price/earnings ratio, and rate of return on common stockholders’ equity Gullo Company reported these figures for 2018 and 2017: Requirements Compute Gullo Company’s earnings per share for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest cent. Compute Gullo Company’s price/earnings ratio for 2018. Assume the company’s market price per share of common stock is $9. Round to two decimals. Compute Gullo Company’s rate of return on common stockholders’ equity for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest whole percent.
Calculate the following ratios for Avartar Sdn. Bhd. for years ended 31 March 2019 and 31 March2018 16) Dividend cover; 17) Price/earnings ratio (share prices in 2019 and 2018 is RM1.57 and RM2.09 respectively); 18) Dividend yield (share prices after declaration of dividend in 2019 and 2018 are RM1.35 and RM1.80 respectively); and 19) Earnings yield (use market price per note 17). Provide the formulas used for calculating the ratios and all workings should be shown clearly.
Prepare a comprehensive summary assesment detailing the story those ratios are telling you about the company and its ability to effectively position itself within the stock market through its dividend policy and finacial performance
Comment on the information that each ratio provides. Based on the results, why is there a gap between book and market values for your company?
Computing earnings per share, price/earnings ratio, and rate of return on common stockholders’ equity Bianchi Company reported these figures for 2018 and 2017: Requirements Compute Bianchi Company’s earnings per share for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest cent. Compute Bianchi Company’s price/earnings ratio for 2018. Assume the company’s market price per share of common stock is $9. Round to two decimals. Compute Bianchi Company’s rate of return on common stockholders’ equity for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest whole percent.
Compute the following ratios for both companies for the current year, and decide which company’s stock better fits your investment strategy. Debt Ratio Earning per share of common stocks Price/earning ration Dividend payout

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