0.01 328,000 32,180,000 0.06 1,995,000 32,180,000 0.03 1,995,000 78,975,000 Oper

Question

0.01 328,000 32,180,000 0.06 1,995,000 32,180,000 0.03 1,995,000 78,975,000 Operating margin Operating Income (EBIT) Sales Profit margin Net Income Sales Return on total assets (ROA) Net Income Total Assets Return on common equity (ROE Net Income Common Equity Return on invested capital (ROIC) EBIT (1-T) Total Invested Capital Basic Earning Power (BEP) EBIT) Total Assets 0.05 1,868,000 34,532,000 0.10 3,345,000 34,532,000 0.04 3,345,000 82,841,000 0.043450065 -0.072379639 -0.121778069 3,345,000 27,468,000 2337.74816849388.93911 -749,938,276,000 46247672000-1.07223E+12 21,710,000 0.02 1,868,000 82,841,000 1,724,000 33,347,000 -0 1,206,000 33,347,000 0.0 1,206,000 85,123,000 1,206,000 1,995,000 27,756,000 27,563,000 39873.3 18,808,000 19,783,000 0.00 328,000 78,975,000 0.0 1,724,000 85,123,000 Price/Earnings (P/E Price per share Earning per share Market/Book (M/B) Market price per share Book value per share Data Sprint Data Sprint Ratios. int

Explanation / Answer

Calculation of desired ratios....

1) Price per earning share :- EBIT/NO. OF OUTSTANDING SHARES

NOTE:- since in the given problem price of shares is not given we will assume it to be $100.

Therefore, number of shares shall be 18808000/100= 188080. (2017)

19783000/100= 197830(2016)

Price per earning share (2017) = $1724000/188080 =9.17

Price per earning share (2016) = $328000/197830= 1.65

2) Return on common equity :- Net income- pref.Dividend / Debt+equity

2017- (1206000)/27756000= -0.043

2016- (1995000)/ 27563000= -0.072

3) Return on invested capital= Net income-Dividend/ Debt+equity

2017= (1206000)/18808000 - -0.064

2016- (1995000)/19783000 - -.0.100

4) Mkt book value - Market capitalisation/ Total book value

# Market capitalisation = MPS * No. Of shares

Since market price is not.given it is assumed to be $ 125

Therefore, market capitalisation 2017- 125*188080= $23510000. ,. 2016:- 125*197830= $247287250

Mkt book value 2017:- 23510000/18808000- 1.25

Mkt book value 2016- 247287250/19783000 -12.50

  

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