The price-earnings ratio for Incorporation A, Incorporation P, and Incorporation C

Question

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,420,000, $144,000 in the common stock account, and $2,690,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,620,000, $154,000 in the common stock account and $2,990,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $96,000 and the company paid out $149,000 in cash dividends during 2022. The firm’s net capital spending for 2022 was $1,000,000, and the firm reduced its net working capital investment by $129,000. What was the firm's 2022 operating cash flow, or OCF?

Answer 1

Question

Chapter 14, Problem 14.2MAD

(1)

(a)

To determine

The price-earnings ratio for Incorporation A, Incorporation P, and Incorporation C

(b)

To determine

The dividend yield for Incorporation A, Incorporation P, and Incorporation C

(2)

To determine

To indicate: The company which would have best potential in the future for price appreciation

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