Week 2 - Discussion Forum 1

Use your own words to answer the following questions: Write the formula for the P/E ratio and what it measures? Should you invest in a company with high P/E or low P/E? A company has the following items for the fiscal year 2020: Revenue = 10 million Net income = 4 million The company has 2 million shares of stock Stock price per share = $70 Calculate the company’s earnings per share and P/E ratio

hello, I need help please

The _________ is the internal rate of return a firm must earn on its investment in order to maintain the market value of its stock. a. gross profit margin b. IRR c. Cost of Capital d. net profit margin    A snapshot from Violet Flowers Ltd.'s financial information reveals the following for years 2018 and 2019: Item 2018 2019 Long Term Debt $4,600,000 $4,900,000 Interest expense $600,500 $870,000       Dividends $400,000 $590,000 Common Stock $1,740,000 $1,815,000 Additional paid-in surplus $4,200,000 $4,500,000   Violet Flowers' FCF for 2019 was: a. $300,000 b. $515,000 c. $785,000 d. $270,000

This question requires an analysis of financial statements from annual reports of companies. Complete the analysis by incorporating the three dimensions of ratios which are liquidity, profitability, and solvency. As an investor, why you prefer this company to invest in? based on ratios and horizontal & vertical analysis of company the company that i’ve been made, justify your answer.

Attached is Apple Inc.'s financial information. Please answer questions 1-3.  1. Apple's return on total equity ratio for 2021 is  a. 1.47  b. 0.89  c. 0.74 d. 1.65    2. Apple's dividend payout ratio in 2021 is  a. 24.57%  b. 15.17%  c. 37.38%  d. 43.26%    3. Apple's sustainable equity growth rate in 2021 is  a. 0.69  b. 1.47  c. 1.25 d. 0.56

Assume you are a financial analyst in an investment company, and you are required to analyse and compare the profitability dimensions of Natural Minerals Pty Ltd with the industry average for the year 2019 and 2020.                                                                                     Natural Minerals Pty Ltd Profitability   2020 2019 Industry Average Return on Equity Ratio = 12% 9% 10% Return on Assets Ratio = 26% 22% 24%

Choose all the correct statements about the following information. In 2018, FocusPoint Decisions Inc.'s ROA was 8% and their ROE was 12%. In 2019, ROA was 9% and ROE was 18%.    A. FocusPoint had an equity multiplier of 2 in 2018.   B. FocusPoint's performance improved from 2018 to 2019.   C. FocusPoint most likely issued new equity in 2019.   D. FocusPoint had an equity multiplier of 2 in 2019.   E. FocusPoint most likely borrowed money in 2019.

Imagine yourself as a financial manager in a company, and you are requested to provide a financial report including the calculation of the current market rate of return from the investor's perspective for each of the four investment options, taking into consideration the followings:  Common stocks available for investment are:  2,500,000 shares of common stock, with a par balance of $1 per share.  The current market value of the common share is $24.43 per share.  Annual earnings per share $1.95.  Bonds available for investment  $1,750,000 bonds (A) with an interest of 6.25%, with a current market value of $104 per bond (price of $104 per $100).  $2,250,000 Notes B, with an interest rate of 5.75%, with a current market value of $94.50 (price $94.50 per $100 note).  The corporate tax rate is 35%.  Preferred shares available for investment  950,000 outstanding preferred shares with a par value of $10 with a preferential dividend payment…

For the companies Lockheed-Martin (LMT) & Northrop-Grumman (NOC) Use Macrotrends data to calculate Return on Sales, Return on Assets, Debt Ratio, Inventory Turnover, Lead Time for each company Use Fintel to determine EPS forecasts for 2024-2027 for each company, and use those to calculate an average earnings growth rate for each - https://fintel.io/sfo/us/Imt https://fintel.io/sfo/us/noc Assuming MARR = WACC + 3%, calculate a fair market price for the stock of each company, assuming that earnings grow at the calculated rate for the next 50 years, with the following WACC LMT: NOC: 8.00% 8.25% Find the current stock price for each company Based on the above calculations, which company's stock would you buy, and provide your reasoning (If neither or both, explain reasoning)

A company has earnings of $3.18 per share. The benchmark PE for the company is 18. What stock price would you consider appropriate? Please use a HP 10bii+ Financial Calculator

NOTE: based on the info given please solve the question .

See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's costs and expenses had been the same fraction of revenues in 2016-2019 as they were in 2015. What would Mydeco's EPS have been each year in this case? Calculate the new EPS for 2016-2019 below:  (Round dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal places.)

As of the end of 2020, Microsoft had an annual net income of $51.3 Billion and total assets of $301.3 Billion. Microsoft's total book value of equity as of the end of 2020 was $118.3 Billon. Finally, Microsoft currently has 7.56 billion shares outstanding, and is priced at $243 a share.   What is Microsoft's leverage, also known as its equity mulitplier (EM) (remember to use market value of equity)?     7.56     5.42     6.10     8.11

f, g, and h

i, j and k

I just need assistance with h.

A) Construct an income statement for each year  B) Construct a balance sheet for each year. Make sure the balance sheets are balanced (Hint: New equity raised for the year 2025 is not given you will have to obtain it, and it will be equal to the amount needed to balance the balance sheet)

You are a researcher and an investment advisor with an investment bank. Your company is planning to develop its own financial statement analysis to track the performance of its portfolios in a particular listed company in the Ghana Stock exchange. So far, the company has portfolios which consist of the equities of companies in the following sectors of the economy ⚫ Financial - Manufacturing The manufacturing category includes all companies that are non- financial. You have been asked to calculate financial ratios for a five-year period of the chosen company based on the following: Profitability ratios > Efficiency/Activity Ratios Liquidity Ratio Financial Leverage/Debt Rations > Investment/Market Ratios You are required to prepare a report for the company. The report should have the following features: (a) Beautiful back-page with appropriate title (b) Executive Summary (c) Table of Content (d) Introduction in terms of what the document is about The introduction should talk about the…

Compute Topp Company's price-earnings (PE) ratio if its common stock has a market value of $22.20 per share and its earnings per share (EPS) is $4.00. Topp's key competitor, Lower Deck, has a price-earnings (PE) ratio of 9.5. For which company does the market have higher expectations of future performance? Complete this question by entering your answers in the tabs below. Price Earnings Ratio Future Performance Compute Topp Company's price-earnings (PE) ratio if its common stock has a market value of $22.20 per share and its earnings per share (EPS) is $4.00. Choose Numerator: Price Earnings Ratio 1 Choose Denominator: 1 1 Price Earnings Ratio = Price Earnings Ratio

The investment banking firm of Stan Inc. will use a dividend valuation model to appraise the shares of the DB Corporation. Dividends (D) at the end of the current year will be P1.20. The growth rate (g) is 9% and the discount rate (K) is 13%?

Using the following data, calculate the firm’s price earnings ratio.  Show your work and briefly explain what this means to an investor.  Net Income $68.2 million Market Capitalization $620 million Earnings per share $8.20

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the balance sheet shows that equity has increased significantly in 2021. Your task is to explain what is the reason for the change in total equity in 2021. The answer here must be documented with figures and the use of technical terminology

You are considering investing in Henderson Engineers Ltd. The book value of shareholders' equity is $40,0000,000. The firm has made a net profit of $ 660,000 for the year ending 30 June 2023. The earnings per share is $1.30. You also find the PE ratio for firms similar to Henderson is 12. a) What is the book value per share for Henderson Engineers Ltd? b) What price would you expect Henderson shares to sell for? c) Explain would you invest in this share and why.

At the beginning of 2012 investors had invested $25,000 of common equity in Grant Corp. and expect to earn a return of 11% per year. In addition, investors expect Grant Corp. to pay out 100% of income in dividends each year. Forecasts of Grant's net income are as follows: 2012 - $3,500 2013 $3,200 2014 - $2,900 2015 and beyond - $2,750 Using this information, what is Grant's residual income valuation at the beginning of 2012?

Can you answer please?

I need help to determine the following;  6. For P & B Manufacturing to assess its market performance, I need help to calculate the earnings per share AND the dividend payout ratio (the par value of the company’s common stock is $10 per share). Include calculations and round answers to 2 decimal places.

The specific financial aspects to be considered with your analysis are:• Profit Margin• Total Owners' Equity.• Current Ratio.• Return on Equity.• Debt Equity Ratio.• Earnings per Share.

Please show steps in excel.

Here are key financial data for the company Silverstar Inc.: Earnings per share for 2021 is $5.50, numberof shares outstanding is 40 million, target dividend payout ratio is 50%, planned dividend per share is$2.75 and stock price at year-end 2021 is $150.The company plans to pay the entire dividend early in January 2022. Ignore all corporate and personaltaxes.1. What will be House of Herringís stock price after the planned dividend payout?2. Suppose the company cancels the dividend and announces that it will use the money saved torepurchase shares. What happens to the stock price on the announcement date? How many shareswill the company need to repurchase?3. Suppose that, instead of canceling the dividend, the company increases dividends to $5.50 per shareand then issues new shares to recoup the extra cash paid out as dividends. What happens to thewith- and ex-dividend share prices? How many shares will need to be issued?