Question

XYZ Inc. Income Statement 2018 2017 Sales                                 &nb

XYZ Inc. Income Statement
2018 2017
Sales                                                                                           950000 800,000
COGS 650000 600000
Gross Profit 300000 200000
Operating costs (excluding depreciation)                             50000 60,000
EDITDA                                                                                       250,000 140000
Depreciation                                                                             20000 18,000
EBIT                                                                                          230000 122,000
Interest Expense                                                                     100000 100,000
EBT                                                                                              130000 22,000
Taxes                                                                                           25000 5,000
Net Income                                                                                105,000 17,000
Common Dividends                                                                     6000 4000
Addition to Retained Earnings                                             99000 13,000
2018 2017
Year-end stock price $50 $40
# of shares 5500 3500

Find the Ratios for 2018:

EPS:

P/E:

0 0
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Answer #1

EPS= Net Income/Number of shares:

For 2018, Net income=105,000

No of shares=5500

EPS=105,000/5500
=19.09

\

PE=Price of share/EPS

Price=50

PE=50/19.09

=2.62 times

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