Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Chapter 7, Problem 6P
Summary Introduction
To determine: The company’s total asset turnover and firm’s equity multiplier.
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Energy Resources generated an EPS of $4.38 over the last 12 months. The company's earnings are expected to grow by 30.7% next year, and because there will be
no significant change in the number of shares outstanding, EPS should grow at about the same rate. You feel the stock should trade at a P/E of around 30 times
earnings. Use the P/E approach to set a value on this stock.
Using the P/E approach, the value on this stock is $
(Round to the nearest cent.)
The Anderson Company has a net profits of $20 million, sales of $226 million, and 3.9 million shares of common stock outstanding. The company has total assets of
$139 million and total stockholders' equity of $74 million. It pays $2.31 per share in common dividends, and the stock trades at $40 per share. Given this information,
determine the following:
a. Anderson's EPS.
b. Anderson's book value per share and price-to-book-value ratio.
c. The firm's P/E ratio.
d. The company's net profit margin.
e. The stock's dividend payout ratio and its dividend yield.
f. The stock's PEG ratio, given that the company's earnings have been growing at an average annual rate of 8.2%.
a. Anderson's EPS is $
(Round to the nearest cent.)
Chapter 7 Solutions
Intermediate Financial Management (MindTap Course List)
Ch. 7 - Define each of the following terms:
Liquidity...Ch. 7 - Financial ratio analysis is conducted by managers,...Ch. 7 - Prob. 3QCh. 7 - Profit margins and turnover ratios vary from one...Ch. 7 - How might (a) seasonal factors and (b) different...Ch. 7 - Why is it sometimes misleading to compare a...Ch. 7 - Greene Sisters has a DSO of 20 days. The companys...Ch. 7 - Vigo Vacations has $200 million in total assets,...Ch. 7 - Winston Watch’s stock price is $75 per share....Ch. 7 - Reno Revolvere has an EPS of $1.50, a cash flow...
Ch. 7 - Needham Pharmaceuticals has a profit margin of 3%...Ch. 7 - Prob. 6PCh. 7 - Ace Industries has current assets equal to 3...Ch. 7 - The Morrit Corporation has $600,000 of debt...Ch. 7 - The Kretovich Company had a quick ratio of 1.4, a...Ch. 7 - Data for Lozano Chip Company and its industry...Ch. 7 - Prob. 14PCh. 7 - Why are ratios useful? What three groups use ratio...Ch. 7 - Prob. 2MCCh. 7 - Calculate the 2019 inventory turnover, days sales...Ch. 7 - Calculate the 2019 debt ratio,...Ch. 7 - Prob. 5MCCh. 7 - Prob. 8MCCh. 7 - Prob. 9MCCh. 7 - What are some qualitative factors that analysts...
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