Question

Assume you are given the following abbreviated financial​ statements: (attached) On the basis of this​ information, calculate as many​ liquidity, activity,​ leverage, profitability, and common stock measures as you can.​(Note​: Assume the current market price of the common stock is $62.65 per share. * huge thumbs up for correct answers*

Current assets Fixed and other assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equity Common shares outstanding Total revenues Total operating costs and expenses Interest expense Income taxes Net profits ($ in millions) $271 $312 $583 $184 $84 $315 $583 17 million shares $763 $661 $16 Dividends paid to common stockholders $16

Liquidity measures:

The current ratio is ? (Round to two decimal​ places.)

The​ firm's net working capital is (blank million) ? ​(Round to the nearest million​ dollars.)

Activity measures:

The​ firm's total asset turnover is ? ​(Round to two decimal​ places.)

Leverage measures:

The​ firm's debt-equity ratio is ?. (Round to two decimal​ places.)

The​ firm's times interest earned ratio is ? ​(Round to two decimal​ places.)

Profitability measures:

The​ firm's net profit margin is ? ​(Round to two decimal​ places.)

The​ firm's return on assets​ (ROA) is ? ​(Round to two decimal​ places.)

The​ firm's return on equity​ (ROE) is ? ​(Round to two decimal​ places.)

Common stock measures:

The earnings per share​ (EPS) is ? ​(Round to the nearest​ cent.)

The​ P/E ratio is ? ​(Round to two decimal​ places.)

The sales per share is ? ​(Round to the nearest​ cent.)

The​ price-to-sales ratio is ? ​(Round to two decimal​ places.)

The amount of dividends per share is? ​(Round to the nearest​ cent.)

The dividend yield on the common stock is ?% ​(Round to two decimal​ places.)

The dividend payout ratio is ?% ​(Round to two decimal​ places.)

The​ firm's book value per share is ?​ (Round to two decimal​ places.)

The​ price-to-book value is ? ​(Round to the nearest​ cent.)

Answer 1

PAGE NO.: Les DATE: 1 SOLUTION : Page 1 Calculation of urrent Ratio e Current Ratio = Current Assets Current Liabilities 1.47:1 271 271 184 = 1.47:1 Calculation of NEY WORKING CAPITAL Curslet Liabilities Net Working Capital - Current Assets 6 - 271 - 184 = 587 million Calculation of TOTAL ASSEY TURNOVER Assef Turnover Ratio = Net sales Total Assets = 763 1631 583 Calculation of Debt Equity Ratio Debt Equity Ratio = long term debts Shareholders E = 89 = 0.26666 ie (0.27 ] 3/

PAGE NO.: DATE: 1 Page 2 Calculation of times interest earned Katio times Interestearned Natio - Earnings before Intereste tak Interestenpenses = (+63-661) 66375: 1 16 Calculation of Net Profit Margin Net profit Margin = Net profit x 100 Net Sales = 52 x 100 => 6682% 763 Calculation of Return on Assets Return on Assets = Net profit X100 Total Assets = 52 x100 = 8.92%) Calculation of Return on Equity :- Return on Equity = Net Profit Shareholders - x 100 52 315 x 100 => 16.51%

PAGE NO.: DATE: 1 lage 3 Calculation of earnings ver shase Leps IEPS = Net Profits Number of shares 1 = 52 = $3.06 pet share 17. Calculation of Pt Ratio IPE Ratio = Market Price pershare Earnings per share 120.47 tinies 62.65 3.06 Calculation of Sales ver share Sales Per Share = Total Revenues Number of shares = 763 - $44.88 per share 17 Calculation of Price to Sales Ratio Price to Saks natio = Market sales Price pershare per share = 62.65 44.88 = 1.3959 ie 11.40 I
A BIG THUMBS UP WOULD BE APPRECIATED!!!
DATE: of fage 4 Dividend per share Calculation DPS = - Total dividend paid Number of shares = 16 => 0.94 pess share Calculation of dividend yield Dividend Yield = Ber DPS X100 MPS => 0.94_ x100 = 1.50%) 62.65 Calculation of Dividend Payout Katio IDP Ratio = Dividend vershare x400x100 Earnings ver share = 0.94 x100 = 30.7246] 3.06 Calculation of Book VALUE PER SHARE Bups = Share holders Equity Number of shares کار د لعبهطنهم 3 18 . 5 . hare 17

PAGE NO.: DATE: Calculation of Page 5 Price to book value frue to book value = Market Price pershare Book Value vershache 2001 62.65 18.53 - 3.38 times 338 times