Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?

A company has an EPS of $2.40, a book value per share of $21.84,and a market/book ratio of 2.73. What is its P/E ratio?

The price-earnings per share of A, B, C, D and E is P6.00, P6.25, P6.80, P6.90 and P6.20. If A has earnings per share of P1,200.00, it would currently be ____ by ____ compared to the group average.  a. Overvalued by P516  b. Undervalued by P540  c. Undervalued by P516  d. Overvalued by P550

A company expects EPS to be $2.52 next year. The industry average P/E ratio is 23.99 and Enterprise multiple is 7.57.  The EBITDA for the company is $22.97 million.  What is an estimate of the stock price using the method of comparables for P/E multiples? Round your answer to two (2) decimal places.

A company has an EPS of $2.85, a book value per share of $27.93, and a market/book ratio of 2.8x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Do not round intermediate calculations. Round your answers to two decimal places.

Hackworth Co. is a privately owned firm with few investors. Investors forecast their earnings per share (EPS) to reach $3 this coming year. The average price-to-earnings (P/E) ratio for similar companies in the S&P 500 is 10. What is the estimated intrinsic value of Hackworth Co.’s stock per share?   Market multiple analysis is also used to calculate the value of a company, which is further used to calculate the intrinsic value per share of the firm. Suppose you have the information given in the following table for Company X.   Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000   What is value of the entity multiple of Company X in Year 1?

The S&P 500 Index is one of the most commonly used benchmark indices for the U.S. equity markets. Consisting of 500 companies, it is a market value-weighted index. This means that each company’s performance is reflected in the index, weighted by the ratio of the company’s value to the total value of all the companies.   Based on your understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current price divided by earnings per share over the previous 12 months) of the S&P 500 Index be higher?   a. Forecast earnings for S&P 500 companies are expected to rise in the future.   b. Forecast earnings for S&P 500 companies are expected to fall in the future.     You invest $100,000 in 40 stocks, 20 bonds, and a certificate of deposit (CD). To which kind of risk will you primarily be exposed?   a.Portfolio risk   b.Stand-alone risk     Generally, investors would prefer to invest in assets that…

Consider the following annual returns of Estee Lauder and Lowe’s Companies:    EsteeLauder Lowe’s Companies Year 1   23.4 %   −6.0 % Year 2   −26.0     16.1   Year 3   17.6     4.2   Year 4   49.9     48.0   Year 5   −16.8     −19.0     Compute each stock’s average return, standard deviation, and coefficient of variation. (Round your answers to 2 decimal places.)                                                ESTEE LAUDER.                     LOWES COMPANY   Average return.                                                 %.                                                    %        Standard deviation                                               %                                                  % Coefficient of variation

After researching the competitors of EJH Enterprises, you determine that most comparable firms have the following valuation ratios (see MyLab Finance for the data in Excel format): EJH Enterprises has earnings per share of $2, EBITDA of $300 million, $30 million in cash, $40 million in debt and 100 million shares outstanding. What range of prices is consistent with both sets of multiples?