questions, CUU For Multiple choice NOTE: 37 JUST INSERT THE SCANTRON INSIDE THE
ID: 2821288 • Letter: Q
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questions, CUU For Multiple choice NOTE: 37 JUST INSERT THE SCANTRON INSIDE THE TEST, AND THE SCANTRON AND LEAVE WHEN YOU ARE DONE.YOU SHEET OF STANDARD SIZE PAPER AS YOUR REFERENCE SNE ALLOWED SYLLABUS FOR INSTRUCTIONS). QUESTIONS: TIME LIMIT: 70 minutes: RETURN THE TEST WITH (SEE MY which of the following items found in an income statement of a o to connect that S amount in a related item in the balance sheet of can be the same company b)Accounts Payable Odepreciation dLong t term debt a) Cash Using the data given below for GLOBAL Conglomerate corporation, for year 2005. please answer questions 2 to 7: Current Liabilities: $48 million Long term Debt $107.5 million stock holder equity: 22.2 Million Total liability and stockholder equity: 177.7 million Net income after taxes: 2 million dollars for 2005. 2) Compute the book value per share for 2005. Firm has 3.6 million shares outstanding A) 8.23 (6.16 c)5.33 d) 10.29 hat is the percent of equity in the financial structure of this firm in 2005? od.a 29.7% b)23.9%@i2.5% D) 17.3% 3) How much did the firm retain in 2005. Find amount retained in just the year 2005 Firm paid $750,000 in dividends in 2005. $1.25M b) S2M c) $2.75M d)$955,000 E)S1.55M 195Explanation / Answer
1. Depreciation is the item that is found in income statement as other items cash, accounts payable andlong tern debt are related with balance sheet.
2.2 Book value of share = Stockholder equity/share holder funds/ no of shares outstanding
= 22.2/3.6
= 6.16
2.3 Percentage of the equity = Stockholder equity/ Total Liabilities and equity
= 22.2/177.7
= 12.5%
2.4 Calcualtion of amount retained = Net income after tax minus dividend payout
= 2.2M - 0.75M
= 1.25M
2.5 Dividend Payout Ratio : = Dividend payout/ Net income after tax
= 0.75M / 2.2M
= 37.5%
2.6 Dividend Yield = Dividend per share / Market price/selling price of share
Dividend per share = 0.75M/3.6M
= 0.2083M
Dividend Yield = 0.2083M / 8
= 2.6 %
2.7 P/E Ratio = Market prce share(MPS) / Earning per share (EPS)
MPS= 25
Earning per share (EPS) = Net profit after tax / No of shares outstanding
= 2M / 3.6M
= 0.5555
P/E Ratio = 25M / 0.5555 M
= 45 Times
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