The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2012 Cash and securities $ 1,588.0 Accounts receivable 9,510.0 Inventories 13,700.0 Total current assets $24,798.0 Net plant and equipment 15,272.0 Total assets $40,070.0 Liabilities and Equity Accounts payable $ 7,420.0 Notes payable 5,030.0 Accruals 4,030.0 Total current liabilities $16,480.0 Long-term bonds 10,320.0 Total debt $26,800.0 Common stock 3,720.0 Retained earnings 9,550.0 Total common equity $13,270.0 Total liabilities and equity $40,070.0 Income Statement (Millions of $) 2012 Net sales $59,700.0 Operating costs except depr'n $54,318.0 Depreciation $ 1,229.0 Earnings bef int and taxes (EBIT) $ 4,153.0 Less interest 249.2 Earnings before taxes (EBT) $ 3,903.8 Taxes $ 1,522.5 Net income $ 2,381.3 Other data: Shares outstanding (millions) 180.00 Common dividends (Millions of $) $ 505.72 Int rate on notes payable & L-T bonds 6.00% Federal plus state income tax rate 39% Year-end stock price $77.05 Refer to Exhibit 8.1. What is the firm's P/E ratio? Group of answer choices 6.4 7.7 8.4 7.0 5.8
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2012 Cash and securities $ 1,588.0 Accounts receivable 9,510.0 Inventories 13,700.0 Total current assets $24,798.0 Net plant and equipment 15,272.0 Total assets $40,070.0 Liabilities and Equity Accounts payable $ 7,420.0 Notes payable 5,030.0 Accruals 4,030.0 Total current liabilities $16,480.0 Long-term bonds 10,320.0 Total debt $26,800.0 Common stock 3,720.0 Retained earnings 9,550.0 Total common equity $13,270.0 Total liabilities and equity $40,070.0 Income Statement (Millions of $) 2012 Net sales $59,700.0 Operating costs except depr'n $54,318.0 Depreciation $ 1,229.0 Earnings bef int and taxes (EBIT) $ 4,153.0 Less interest 249.2 Earnings before taxes (EBT) $ 3,903.8 Taxes $ 1,522.5 Net income $ 2,381.3 Other data: Shares outstanding (millions) 180.00 Common dividends (Millions of $) $ 505.72 Int rate on notes payable & L-T bonds 6.00% Federal plus state income tax rate 39% Year-end stock price $77.05 Refer to Exhibit 8.1. What is the firm's P/E ratio? Group of answer choices 6.4 7.7 8.4 7.0 5.8
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter24: Bankruptcy, Reorganization, And Liquidation
Section: Chapter Questions
Problem 5SP
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Question
Exhibit 8.1
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Refer to Exhibit 8.1. What is the firm's P/E ratio?
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Balance Sheet (Millions of $) | |
Assets |
2012
|
Cash and securities |
$ 1,588.0
|
Accounts receivable |
9,510.0
|
Inventories |
13,700.0
|
Total current assets |
$24,798.0
|
Net plant and equipment |
15,272.0
|
Total assets |
$40,070.0
|
Liabilities and Equity | |
Accounts payable |
$ 7,420.0
|
Notes payable |
5,030.0
|
Accruals |
4,030.0
|
Total current liabilities |
$16,480.0
|
Long-term bonds |
10,320.0
|
Total debt |
$26,800.0
|
Common stock |
3,720.0
|
9,550.0
|
|
Total common equity |
$13,270.0
|
Total liabilities and equity |
$40,070.0
|
Income Statement (Millions of $) |
2012
|
Net sales |
$59,700.0
|
Operating costs except depr'n |
$54,318.0
|
$ 1,229.0
|
|
Earnings bef int and taxes (EBIT) |
$ 4,153.0
|
Less interest |
249.2
|
Earnings before taxes (EBT) |
$ 3,903.8
|
Taxes |
$ 1,522.5
|
Net income |
$ 2,381.3
|
Other data: | |
Shares outstanding (millions) |
180.00
|
Common dividends (Millions of $) |
$ 505.72
|
Int rate on notes payable & L-T bonds |
6.00%
|
Federal plus state income tax rate |
39%
|
Year-end stock price |
$77.05
|
Refer to Exhibit 8.1. What is the firm's P/E ratio?
Group of answer choices
6.4
7.7
8.4
7.0
5.8
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