Find the EPS, P/E ratio, and dividend yield of a company that has 5 million shares of common stock outstanding (the shares trade in the market at $25), earns 10% after taxes on annual sales of $150 million, and has a dividend payout ratio of 35%. At what rate would the company’s net earnings be growing if the stock had a PEG ratio of 2.0?
Answer to relevant QuestionsP. Deen Enterprises Inc. has a total asset turnover ratio of 3.0 and a net profit margin of 9%. What is the company’s return on assets? Listed on the next page are the 2012 and 2013 financial statements for Otago Bay Marine Motors, a major manufacturer of top-of-the-line outboard motors. Otago Bay Marine Motors Balance Sheets ($ in thousands) a. On the basis ...Highgate Computer Company produces $2 million in profits from $28 million in sales. It has total assets of $15 million. a. Calculate Highgate’s total asset turnover and its net profit margin. b. Find the company’s ROA, ...Can the growth prospects of a company affect its price-to-earnings multiple? Explain. How about the amount of debt a firm uses? Are there any other variables that affect the level of a firm’s P/E ratio? Assume an investor uses the constant-growth DVM to value a stock. Listed below are various situations that could affect the computed value of a stock. Look at each one of these individually and indicate whether it would ...
Post your question