Smith Company is a firm specializing in financial advice for retired individuals. After some analysis, you have determined that an earnings multiplier of 7 is appropriate for this type of business. Smith’s most recent earnings totaled $261,000 and earnings per share was $5.60. What is the estimated value of the firm based on the earnings multiplier?
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W7 Q3
Smith Company is a firm specializing in financial advice for retired individuals. After some analysis, you have determined that an earnings multiplier of 7 is appropriate for this type of business. Smith’s most recent earnings totaled $261,000 and earnings per share was $5.60. What is the estimated value of the firm based on the earnings multiplier?
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- f the firm's reported net income was $77.4 million this year, its retained earnings was $509.4 million, and its previous year's retained earnings was $763.0 million. what was the firm's total dividends paid this year? (if your answer is $1.23 million, just enter 1230000).Q28 If the company’s Earnings before interest and taxes (EBIT) are OMR 60,000, its cost of equity is 8% and overall cost of capital is 12%, what is the total value of the firm under Net Operating Income Approach? a. OMR 500,000 b. OMR 750,000 c. OMR 900,000 d. OMR 600,000Please provide solutions. Thank you! The following information relates to Konbu Corporation for last year: Price earnings ratio = P15 Dividend payout ratio = 30% Earnings per share = P5 What is Konbu's dividend yield ratio for last year?a.1.5%b.2.0%c.4.5%d.10%
- Q5 The Sleep Company had the following operating results for 2021-2022. In addition, the company paid dividends in both 2021 and 2022 of $61,800 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2021 was $8 and $7 in 2022. The industry average earnings multiple for the mattress industry was 9 in 2022 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,000,000 shares of outstanding stock at the end of 2022. Balance Sheet, December 31, 2022 2021 Cash $ 346,000 $ 106,000 Accounts Receivable $ 356,000 $ 406,000 Inventory $ 256,000 $ 306,000 Total Current Assets $ 958,000 $ 818,000 Long-lived Assets 1,140,000 1,160,000 Total Assets $ 2,098,000 $ 1,978,000 Current Liabilities $ 206,000 $ 306,000 Long-term Debt 606,000 506,000 Shareholder Equity 1,286,000 1,166,000 Total Debt and Equity $ 2,098,000 $ 1,978,000 Income Statement, for year…QUESTION 18 Calculate the accounting profit and economic profit for each of the following firms (amounts are in millions of dollars). Which answer is correct? Apple BP Tesla Sales $40,091 $5,730 $2,750 Wages and salaries $29,052 $4,932 $500 Cost of equity capital $12,100 $750 $35 Interest on debt $7,585 $275 $5 Cost of materials $6,500 $556 $1,650 Accounting profit Economic profit a. Accounting profit $6,954 $967 $695 Economic profit -$5,146 $217 $660 b. Accounting profit -$3,046 -$33 $595 Economic profit -$15,146 -$783 $560 c. Accounting profit -$15,146 -$783 $560 Economic profit -$3,046 -$33 $595 d. Accounting profit -$3,046 -$33 $595 Economic profit -$5,146 -$283 $1060 e. Accounting profit -$5,146 $217 $660…10. If the net income after tax of the company is P4,000,000, starting balance of assets is P500,000 and the ending balance of assets is P700,000, what is the return of assets? *a. 8b. 5.71c. 6.6667d. 3.3333 2. If the quick assets of the company amounted to P90,000, and the quick ratio is 9, how much is the current liabilities of the entity? *a. P810,000b. P89,997c. P90,009d. P10,000 7. If net sales amounted to P200,000, net income before tax is P80,000 and the income tax rate is 30%, how much is the profit margin ratio? *a. 0.40b. 0.28c. 2.5d. 3.57 8. Interest expense for the year amounted to P90,000. Income tax expense is P100,000. If net income after tax is P620,000, what is the times interest earned ratio? *a. 6.2b. 9c. 6.888d. P720,000 1. If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the current ratio of the entity? *a. P800,000b. P400,000c. 3d. 1/3 3. If net sales is P200,000 and the average accounts receivable is P50,000, what is…
- B4 The following is a summary of some of the accounting ratios of two companies in the same industry and of comparable size for the year ended 30 June 20X1. Adam plc Ben plc Return on capital employed (ROCE) 18.5% 19% Profit margin 12% 14% Asset turnover ratio 3 3.33 Inventory turnover ratio 3.40 4.1 Trade receivable ratios 61 days 43.8 days Trade payables ratios 64 days 69 days Working capital/Current ratio 1.64 2.31 Quick ratio (acid test ratio) 0.65 1.01 Gearing ratio 30% 25% Required 1 Comment on the financial performance of both companies. Required 2 Who are the primary users of financial statements? List some limitations of financial statements.2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentageQ13 Which one of the following would reduce the cash balances of a business and not reduce the profit for the year? Select one: a. Dividends paid b. Interest paid c. Remuneration to directors d. Distribution costs
- If you know that a firm has its equity increased by JD10,000. The firm has additional investments of JD6,000 by its owners, how much did the firm retain of it is earnings None of any answered mentioned 4,000 10,000 6,000Ch 9. Use the following information for Question 22 and 23. The newspaper reported last week that SunRise Enterprises earned $30.87 million this year. The report also stated that the firm’s return on equity is 13 percent. The firm retains 85 percent of its earnings. What is the firm's earnings growth rate? Format as a percentage as "XX.XX"Question A .Consider the following firms: Net Income this Year Stock price at beginning of year Stock price at end of year Firm A $ 10,000,000 $ 20 $ 10 Firm B $ 8,000,000 $ 10 $ 20 a) The manager of firm A is doing a better job than B b) The manager of firm B is doing a better job than A c) Neither manager is doing a good job d) Both managers are doing a good job Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line