Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $78 at the end of 2014. Make sure the unit is in million dollars.
Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $78 at the end of 2014. Make sure the unit is in million dollars.
(unit: $ in millions)
|
Southeast Systems Balance Sheets |
|||||
|
|
2013 |
2014 |
|
2013 |
2014 |
|
Cash |
$50 |
$100 |
Accounts payable |
$450 |
$500 |
|
Accounts receivable |
600 |
700 |
Notes payable |
300 |
400 |
|
Inventory |
500 |
550 |
Long-term debt |
650 |
650 |
|
Net fixed assets |
1,000 |
1,000 |
Common equity |
300 |
300 |
|
|
|
|
|
450 |
500 |
|
Total Assets |
$2,150 |
$2,350 |
Total Liabilities & Owner’s Equity |
$2,150 |
$2,350 |
|
Income Statement |
|
|
|
2014 |
|
Sales |
$2,370 |
|
Cost of goods sold |
2,070 |
|
|
200 |
|
EBIT |
100 |
|
Interest expenses |
20 |
|
Taxable income |
80 |
|
Taxes |
28 |
|
Net income |
$52 |
|
Dividends |
$2 |
What are the values of the D/E ratio and the equity multiplier (EM) for 2014?
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