Old Tuckahoe, a pale stale ale, provided us with the following financial stateme

Question

Old Tuckahoe, a pale stale ale, provided us with the following financial statements: Balance Sheet, for the year ending 10/31/2008 Assets Current Assets: Cash Acct's Rec inventory Total C/A ($ millions) Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Short term notes Total C/L $25 10 20 $ 3 10 Long Term Debt Net Fixed Assets 30 $ 85 Stockholders' Equity: Common Stock Paid In Capital Retained Earnings Total Stock Equity: Total Liabs.& Equity 20 15 57 s 85 Income Statements for the years ending 10/31/2008 and 10/31/2007 ($ million) 2008 S 51 $ 45 Sales Cost of Goods Sold 20 31 End. Invent. Gross Profit Margin Depreciation Sell, Gen & Admin. EBIT/NOI Interest Expense Profit Before Taxes Less Taxes Net Inco Aft. Taxes 27 21 18 17 14 Using the above information, please calculate the values for the following ratios: Assume the price of the stock is $ 15 and there are 5 million shares of common stock of the common stock. outstanding, Dividends are currently S.50 1. (3 points) Earnings per share for 10/31/2008: net income v ovtshandn common shares

Explanation / Answer

Ratio's Earning Per share for 10/31/2008 1 Net Income after tax/Number of shares outstanding EPS 2 2 Price to Earning Ratio Market Value Per share/Earning Per share 7.5 3 Price to Sales Ratio= Share price per shares/Sales price per share 1.471 4 Price to Book Ratio= Market Price per share/Book Value per share 3.75 5 Dividend Yield= Dividend per shares/Market Price Per share 3.33 7 After Tax Cash flow per share= (After tax Net Income+depreciation)/Number of shares 2.6 8 After Tax Retun on Equity Net Income after tax/Shares holder's Equity 0.175 9 Growth Rate of the firm (Profit after tax for 2008-Profit after tax 2007)/Profit after tax 2007 0.25 Growth Rate= 25 11 Retention Rate of Earning Per share (1-Dividnd Per Share)/Earning Per share -24.5 13 Enterprise multiples that contains enterprise value relate the total value of the company as reflected in the market value of its capital from all sources to a measure of operating earnings generated,such as EBITDA EBITDA=Earning from continuing operation+Interest+Taxes+Depreciation 24 14 Degree of Operating Leaverage=(Sales -Variable cost)/Sales-Variable cost-fixed cost 1.1429 15 Degree of financial leverage=(EBIT/(EBIT-Interest) 1.2353 17 Times Interest Earned Ratio=EBIT/Interest 5.25 18 After tax Returnn on Assets=Net Income/Total assets 0.118

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.