Consider the following table of Earnings Components: Firm A Firm B Firm C Reported EPS $12 $15 $18 Analyst’s EPS composition: Permanent component (βP = 5) 80% 60% 75% Transitory component (βT = 1) 10% 35% 25% Value-irrelevant component (β0 = 0) 10% 5% 0% The implied total earnings multiple of Firm B is:
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Consider the following table of Earnings Components:
| Firm A | Firm B | Firm C | |||
| Reported EPS | $12 | $15 | $18 | ||
| Analyst’s EPS composition: | |||||
| Permanent component (βP = 5) | 80% | 60% | 75% | ||
| Transitory component (βT = 1) | 10% | 35% | 25% | ||
| Value-irrelevant component (β0 = 0) | 10% | 5% | 0% | ||
The implied total earnings multiple of Firm B is:
Multiple Choice
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1.00.
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3.00.
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3.35.
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12.00
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- Consider the following table of Actual earnings: Firm A Firm B Firm C Actual earnings $ 6,000 $ 14,000 $ 18,000 r 10 % 8 % 12 % BVt-1 $ 100,000 $ 150,000 $ 190,000 What are the abnormal earnings for Firm A? Multiple Choice $(4,000) $(6,000) $4,000 $6,000Adams Inc. has the following data: rRF = 4.00%; RPM = 7.00%; and b = 1.20. What is the firm's cost of common from retained earnings based on the CAPM? Group of answer choices 11.53% 12.40% 12.03% 11.78% 12.65%using the table find the folloing for the four firms: Enterprise value to EBITDA Ratio Price-Earnings multiole PEG raio Cpmpany Market Value (OMR million) Net Income (OMR million) Earnings Growth Market Value of Equity (OMR million) Market Value of Debt (OMR million) Cash (OMR million) EBITDA (OMR million) Happy 117.95 22.5 4% 53.07 64.87 41.25 43.85 Smart 112.35 20.25 4.5% 59.53 52. 79 45 44.88 Kind 116.26 21 4.65% 69.76 46.5 63.95 28.20 Cheerful 120 24 5% 42 78 62.4 44.32
- For company, XRZ,Equity multiplier –1.33Total Asset Turnover--1.58Profit Margin – 7.1% Calculate the ROE Its very urgentChoose the correct letter of answer and provide a solution. Thanks The financial ratios of a firm are as follows: Current Ratio=1.33; Acid-test ratio=0.80; Current liabilities=P40,000.00; Inventory turnover ratio=6 times. What is the sales/cost of good sold of the firm? *a. P57,200.00b. P77,200.00c. P97,20000d. P117,200.00e. P127,200.00As a consultant to Basso Inc., you have been provided with the following data: D1 = $0.68; P0 = $28.50; and g = 7.00% (constant). What is the cost of common from retained earnings based on the DCF approach? Group of answer choices 10.14% 9.10% 9.48% 9.39% 8.64%
- If financial leverage of a firm is 4, Interest 6,00,000, Operating Leverage is 3, Variable cost to sales is 66.66%, Income tax rate is 30%, Number of Equity Shares 1, 00, 000. Calculate fixed cost and EPS of the firms. (For your reference, OL = Contribution/EBIT; FL = EBIT/EBT and CL = OL*FL)1. Compute the average P/E ratio of the industry. Include the ratio of all companies in the computation of industry average. 2. Assuming that Northrop's earnings is P11.50 per share, compute for the company's relative value based on the industry average P/E ratio. * 3. Assume that Grumman is the subject company and all others are comparable companies. How much must be its relative value based on the median P/BV ratio of comparable companies if its book value per share is P62? The ratio of the subject company must not be included in computing the median ratio of comparable companies. * 4. Using the the industry averages of the three ratios, would you buy Loral at its current price? (Explanation should be on the handwritten solution) * Yes NoRequired: Firm A has a margin of 10%, sales of $520,000, and ROI of 18%. Calculate the firm's average total assets. Firm B has net income of $70,000, turnover of 1.40, and average total assets of $890,000. Calculate the firm's sales, margin, and ROI. Firm C has net income of $136,000, turnover of 1.91, and ROI of 23.90%. Calculate the firm's margin, sales, and average total assets. Required (Round "Margin" answer to 1 decimal place and use the rounded answer for the subsequent computations.)
- You are given the following information Jamuna Ltd Market price per share Tk. 400 Earnings per share Tk. 25 Dividend per share Tk. 10 P/E ratio 8 times Required (Using Walter’s model) i) Cost of equity, ii) D/P ratio, iii) Retention ratio, iv) Internal rate of return,v)Growth rateQ23 Selected data from Box Division's accounting records revealed the following: Sales $ 345,060 Average investment $ 200,100 Net operating income $ 24,300 Minimum rate of return (divisional cost of capital) 11% Box Division's return on sales (ROS) is: (Round your percentages to one decimal place.) Multiple Choice 11.1%. 4.1%. 7.0%. 19.2%. 12.1%.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