Homework Answers
Answer: c. 1.938; overvalued
PEG ratio = PE ratio / Growth Rate
A stock is overvalued, if its PEG ratio exceeds 1.
PE ratio = Market Price / Earnings per Share
Earnings per Share = Net Income / Common Shares Outstanding = $ 1,210,000,000 / 436,600,000 = $ 2.77
PE ratio = $ 267.66 / $ 2.77 = 96.63
PEG ratio = 96.628159 / 49.84 = 1.938
As the PEG ratio exceeds 1, Netflix stock is overvalued.
Add Answer to:
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 218 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 0 Gross Profit 5.82 4.03 Inventory 0 0 SG&A Exp 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): DO Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 Gross Profit 5.82 4.03 Inventory 0 SG&A Exp 422 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts Payable...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 0 Gross Profit 5.82 4.03 Inventory 0 0 SG&A Exp. 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 0 Gross Profit 5.82 4.03 Inventory 0 0 SGSA Exp. 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in bilions): 2018 3.79 0 2017 2.82 0 2018 15.79 9.97 5.82 4.22 0.42049 1.23 0.01522 0 Income Statement Sales Cost of Goods Sold Gross Profit SGSA Exp Interest Expense Income Before Tax Income Tax Expense Net Income 0 2017 Balance Sheet 11.69 Cash 7.66 Marketable Securities 4.03 Inventory 3.19 Total Current Assets 0.2382 Fixed Assets 0.48532 Total Assets -0.07361 Accounts Payable 0.55893 Total Current...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 0 Gross Profit 5.82 4.03 Inventory 0 0 SGBA Exp. 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts...
DO Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($...
DO Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 Gross Profit 5.82 4.03 Inventory 0 SG&A Exp 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts Payable...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): 2018 3.79 0 0 2017 2.82 0 0 Income Statement Sales Cost of Goods Sold Gross Profit SG&A Exp Interest Expense Income Before Tax Income Tax Expense Net Income 2018 15.79 9.97 5.82 4.22 0.42049 1.23 0.01522 1.21 9.69 2017 Balance Sheet 11.69 Cash 7.66 Marketable Securities 4.03 Inventory 3.19 Total Current Assets 0.2382 Fixed Assets 0.48532 Total Assets -0.07361 Accounts Payable 0.56893...
ALX Corp. has the following financial statements for years 2018 and 2017: $m $m Income statement...
ALX Corp. has the following financial statements for years 2018 and 2017: $m $m Income statement 2018 2017 Revenue $ 1,500 $ 1,300 EBITDA $ 160 $ 150 Dep. & Amor $ 30 $ 25 EBIT $ 130 $ 125 Net Income $ 21 $ 20 EBT $ 109 $ 105 Taxes (35%) Net Income Balance Sheet 2018 2017 Current Assets $ 340 $ 250 Net Plant & Equip. $ 370 $ 340 Total Assets $ 710 $ 690 Current...
The 2018 balance sheets and income statement for Netflix Inc. follow. Analysis and Interpretation of ROE...
The
2018 balance sheets and income statement for Netflix Inc. follow.
Analysis and Interpretation of ROE and RNOA with No Noncontrolling Interest The 2018 balance sheets and income statement for Netflix Inc. follow. Refer to these financial statements to answer the requirements. NETFLIX INC. Consolidated Statements of Earnings For Year Ended December 31, 5 thousands 2018 Revenues $15.794 341 Cost of revenues 9.967.538 Marketing 2.369.469 Technology and development 1,221,814 General and administrative 630.290 Operating income 1,605,226 Other Income (expense) Interest...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 218 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 0 Gross Profit 5.82 4.03 Inventory 0 0 SG&A Exp 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): DO Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 Gross Profit 5.82 4.03 Inventory 0 SG&A Exp 422 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts Payable...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 0 Gross Profit 5.82 4.03 Inventory 0 0 SG&A Exp. 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 0 Gross Profit 5.82 4.03 Inventory 0 0 SGSA Exp. 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in bilions): 2018 3.79 0 2017 2.82 0 2018 15.79 9.97 5.82 4.22 0.42049 1.23 0.01522 0 Income Statement Sales Cost of Goods Sold Gross Profit SGSA Exp Interest Expense Income Before Tax Income Tax Expense Net Income 0 2017 Balance Sheet 11.69 Cash 7.66 Marketable Securities 4.03 Inventory 3.19 Total Current Assets 0.2382 Fixed Assets 0.48532 Total Assets -0.07361 Accounts Payable 0.55893 Total Current...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 0 Gross Profit 5.82 4.03 Inventory 0 0 SGBA Exp. 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts...
DO Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): Income Statement 2018 2017 Balance Sheet 2018 2017 Sales 15.79 11.69 Cash 3.79 2.82 Cost of Goods Sold 9.97 7.66 Marketable Securities 0 Gross Profit 5.82 4.03 Inventory 0 SG&A Exp 4.22 3.19 Total Current Assets 9.69 7.67 Interest Expense 0.42049 0.2382 Fixed Assets 0.41828 0.3194 Income Before Tax 1.23 0.48532 Total Assets 25.97 19.01 Income Tax Expense 0.01522 -0.07361 Accounts Payable...
Netflix has the following abridged financial statement information for fiscal year 2017 and 2018 ($ in billions): 2018 3.79 0 0 2017 2.82 0 0 Income Statement Sales Cost of Goods Sold Gross Profit SG&A Exp Interest Expense Income Before Tax Income Tax Expense Net Income 2018 15.79 9.97 5.82 4.22 0.42049 1.23 0.01522 1.21 9.69 2017 Balance Sheet 11.69 Cash 7.66 Marketable Securities 4.03 Inventory 3.19 Total Current Assets 0.2382 Fixed Assets 0.48532 Total Assets -0.07361 Accounts Payable 0.56893...
The
2018 balance sheets and income statement for Netflix Inc. follow.
Analysis and Interpretation of ROE and RNOA with No Noncontrolling Interest The 2018 balance sheets and income statement for Netflix Inc. follow. Refer to these financial statements to answer the requirements. NETFLIX INC. Consolidated Statements of Earnings For Year Ended December 31, 5 thousands 2018 Revenues $15.794 341 Cost of revenues 9.967.538 Marketing 2.369.469 Technology and development 1,221,814 General and administrative 630.290 Operating income 1,605,226 Other Income (expense) Interest...
Most questions answered within 3 hours.
-
Compare and contrast zero based budgeting and incremental (or
base year) budgeting.
asked 4 minutes ago -
4 pts 10. Which of the following hypothesis would be MOST
difficult to test experimentally? Group...
asked 6 minutes ago -
26 of 50
"I have worked at the Arizona Humane Society for ten years, and
have...
asked 6 minutes ago -
A business owner makes 1,000 items a day. Each day he or she
contributes eight hours...
asked 8 minutes ago -
A
circular loop in the plane of a paper lies inca0.65 T magnetic
field pointing into...
asked 26 minutes ago -
A business owner is trying to decide whether to buy, rent, or
lease office space and...
asked 26 minutes ago -
Thermal Storage Solar heating of a house is much more efficient
if there is a way...
asked 43 minutes ago -
Considering the “fits” for group and job design dimensions,
suppose you had 12 employees with different...
asked 51 minutes ago -
Consider TCP connection management.
How many segments are typically involved in the TCP connection
establishment? What...
asked 1 hour ago -
1. You placed a stop-loss order to sell 500 shares of AAPL with
a stop price...
asked 1 hour ago -
Sylva Warehousing desired to locate a central warehouse to serve
five North Carolina markets. Placed on...
asked 1 hour ago -
A regression was run to determine if there is a relationship
between hours of TV watched...
asked 1 hour ago