You are a Financial Consultant with a share brokerage firm. You have been given the following information about a company: Share Capital : Equity (Rs.10) Rs. 4,00,000Current Liabilities Rs. 1,00,000 12% Preference Rs. 1,00,000Fixed Assets Rs. 9,50,000 General Reserve Rs. 1,84,000Current Assets Rs. 2,34,000 10% Debentures Rs. 4,00,000 Additional information: market price of the share is Rs. 34 and the net profit after tax was Rs. 1,50,000, and the tax had amounted to Rs. 50,000. From the above details, calculate Return on Investment, Return on Shareholders' Funds, EPS, Book value per share and P/E ratio. Also, make your observations about the company on the basis of these ratios.
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- 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…You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $36.00 million in assets with $33.00 million in debt and $3.00 million in equity. LotsofEquity, Inc. finances its $36.00 million in assets with $3.00 million in debt and $33.00 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) LotsofDebt, Inc. = ___.__% LotsofEquity, Inc. = ___.__% Calculate the equity multiplier. (Round your answers to 2 decimal places.) LotsofDebt, Inc. =______ times LotsofEquity, Inc. = ______ times Calculate the debt-to-equity. (Round your answers to 2 decimal places.) LotsofDebt, Inc. =______ times LotsofEquity, Inc. = ______ timesYou are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $38.00 million in assets with $33.75 million in debt and $4.25 million in equity. LotsofEquity, Inc. finances its $38.00 million in assets with $4.25 million in debt and $33.75 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) Calculate the equity multiplier. (Round your answers to 2 decimal places.) Calculate the debt-to-equity. (Round your answers to 2 decimal places.)
- You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $38.00 million in assets with $33.75 million in debt and $4.25 million in equity. LotsofEquity, Inc. finances its $38.00 million in assets with $4.25 million in debt and $33.75 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) debt ratio Lotsofdebt Inc: % Lotsofequity Inc: % Calculate the equity multiplier. (Round your answers to 2 decimal places.) Equity Multiplier Lotsofdebt Inc: Timess Lotsodequity Inc: Times Calculate the debt-to-equity. (Round your answers…You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $5.75 billion, price/earnings ratio = 9.5, common shares outstanding = 20 million, and market/book ratio = 2.3. The firm's market value of total debt is $5 billion; the firm has cash and equivalents totaling $300 million; and the firm's EBITDA equals $3 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.You are given the following information: Stockholders’ equity as reported on the firm’s balance sheet 5 $6.5 billion, price ∕ earnings ratio 5 9, com- mon shares outstanding 5 180 million, and market/book ratio 5 2.0. The firm’s market value of total debt is $7 billion, the firm has cash and equivalents totaling $250 million, and the firm’s EBITDA equals $2 billion. What is the price per share? what is firm EV/EBITDA ?
- Calculate the net asset value, Inn, dollars and the number of shares purchase for the mutual fund. Round shares to thousandths( three decimal places)? (The net asset value is correct I put for shares purchase 805 and it’s wrong)Assume the following information about a firm's capital components: Debt= $20,000 at 8% preferred stock = $20,000 at 11% Common stock = $60,000 at 14% The firm's WACC is:you have appointed as a finacial consaltant by the directors of mario limited .they require you to calculate the cost of capital of the company. the following information is available on the capital structure of the company. 5 500 000 ordinary shares, with a market price of R3 per share. the beta of the company is 1.6, a risk free rate of 8.2% and the return on the market is 18%. there are one million 12%, R1 preference shares with a market value of R2per share. in addition, R2 200 000 8%, Debentures due in 8 years and the current yield-to-maturity is 11% and R5000 000 13% bank loan, due in December 2027. additinal information the vompany has a tax rate of 30%. the latest divided declared was 90 cents per share. a divided growth of 13% was maintained for the past 5 years. required. 1.1 calculate the weited average cost of capital (WACC). Use the capital asset pricing model. 1.2 calculate the cost of equity, using the gordon growth model.
- You are an investment manager at Securities Investment Plc., and you are advising the management of Microprocessors Limited, a manufacturer of microchips, on its capital structure. The following information is available to assist with your assessment. The firm: i. issued 10% preferred share which sold for $100 per share par value. The cost of issuing and selling the stock was $2 per share. ii. has common share with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year. Growth rate in dividends has been 5%. iii. can borrow funds by selling $1,000 par value at 10% coupon interest rate, 10-year debt. To sell securities, an average discount of $30 per bond is given. Assume that the tax rate is 35%. iv. has the following capital structure which it considers optimal. Type of Capital Book Value $ Long term debt 3 000 000 Preferred stock 500 000 Common stock 1200 000 Total $4 700 000 A. Determine the: i. Before- and after-tax cost of debt (4…Kellogg’s CFO is in the process of determining the firm’s WACC and needs to figure out the weights of the various types of capital sources. Accordingly, she starts by collecting information from the balance sheet and the capital markets, and makes up the table shown below: Component Balance Sheet Value Number Outstanding Current Market Price Market Value Debt $150,000,000 150,000 $1,075 Preferred Stock $ 45,000,000 1,500,000 $40 Common Stock $180,000,000 4,500,000 $45.57 Corporate tax rate = 30% is Tc Before tax cost of debt = 7.6% Rd Cost of Equity = 11.36% Re Based upon the above information, calculate the firm’s weighted average cost of capital.NEED ASAP. Solve correctly and show your computations. The Corporation shareholders’ equity section of the Statement of Financial Position includes the following accounts and balances: Ordinary Share Capital, P100 par, 5,000 shares issued P500,000 Ordinary Share Premium 50,000 Retained earnings 750,000 Assuming a major shareholder donated 5,000 shares when the market value of the share capital was P140 per share, and was recorded as a debit to Treasury Shares and credit to Donated Capital. How much was the increase (decrease) in the total Additional Paid In Capital? Put a parenthesis if your answer is decrease.