Homework Answers
Answer of Part a1:
For Company 1:
Price Earnings Ratio = Market Value per share / Earnings per
share
Price Earnings Ratio = $12.66 / $0.81
Price Earnings Ratio = 15.6 times
For Company 2:
Price Earnings Ratio = Market Value per share / Earnings per
share
Price Earnings Ratio = $26.54 / $0.72
Price Earnings Ratio = 36.9 times
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Application Problem 12-11A a1, bi, c1 (Part Level Submission) (Equity analysis ratios) Two companies in the...
FILL IN THE BOXES OF ( B1 ) with steps Application Problem 12-11A a1, b1, c1 (Part Level Submisslon) (Equity analysis r...
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Required information Problem 13-5A Comparative ratio analysis LO A1, P3 (The following information applies to the...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 (The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Data from the current year's income statement Kyan Сопpany Data from the current year-end balance sheets Assets Cash $780,000 $905, 200 644,500 17,000 24,990 218,710 4.84 Sales $ 19,500 $ 37,000 55,400 8,000 132,500 7,650 304,400 $468,640 $544,950 Cost of...
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FILL IN THE BOXES OF ( B1 ) with steps
Application Problem 12-11A a1, b1, c1 (Part Level Submisslon) (Equity analysis ratios) Two companies in the transportation industry had the following information: Company 1 Company 2 Basic eamings per share $0.91 S0.63 Market price per share $11.48 $25.62 Dividends per share $0.502 $0.500 $214,960 Cash flows from operating activities ($thousands) $59,445 Net capital expenditures ($ thousands) $6,014 S74,540 (a1) Your answer is correct. Calculate the P/E ratios for both companies....
Application Problem 12-7A a-b (Part Level Submission) (Liquidity ratios and limitations) Manitoba Manufacturing Inc. (MMI) has a loan from the Canadian National Bank to help finance its working capital. The terms of the loan are that the bank will lend MMI an amount up to 34% of its inventory balance and 50 % of its accounts receivable. One of the loan covenants requires that MMI maintain a current ratio greater than 2. Information related to MMI's current assets and current...
Application Problem 12-17A a (Ratio analysis of two companies) You have obtained the financial statements of A-Tec and Bi-Sci, two new companies in the high-tech industry. Both companies have just completed their second full year of operations. You have acquired the following information for an analysis of the companies (amounts in thousands): Cash Accounts receivable Inventory Prepaid expenses Capital assets (net) Current liabilities Long-term debt Share capital-common shares Retained earnings Sales (all credit sales) Cost of goods sold Interest expense...
Application Problem 12-15A a1, b1 (Part Level Submission) (Ratio analysis over time) The following information comes from the accounting records of Hercep Ltd. for the first three years of its existence: 2018 2019 2020 Statement of Financial Position Assets Cash Accounts receivable Inventory Capital assets (net) Other assets $23,300 67,200 115,000 432,000 238,000 $875,500 $19,700 $27,100 50,000 144,500 136,000 227,000 459,000 484,000 204,000 268,600 $868,700 $1,151,200 Liabilities and equity Accounts payable Long-term debt Common shares Retained earnings $101,000 192,000 521,000...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 (The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Barco Kyan Company Data from the current year-end balance sheets Company Company Data from the current year's income statement Sales $780,000 $905,200 644,500 17,000 24,990 218,710 4.84 4.00 Assets $ 19,500 $ 37,000 39,400 9,800 84,640 5,300 310,000 Cost of goods sold Interest...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 (The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Data from the current year's income statement Kyan Сопpany Data from the current year-end balance sheets Assets Cash $780,000 $905, 200 644,500 17,000 24,990 218,710 4.84 Sales $ 19,500 $ 37,000 55,400 8,000 132,500 7,650 304,400 $468,640 $544,950 Cost of...
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