Po Concept Home (PCH) used to be a well-established but rather stable furniture company traded in...

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Po Concept Home (PCH) used to be a well-established but rather stable furniture company traded in the share market. The trading volume of company's stock in the Exchange was even thin. As a result, in an attempt to boost interests in PCH shares, its board of directors has recently appointed the new charismatic CEO, Jack Mars, who is also known to be financially aggressive in turning around a stagnant company. To the board of directors' delight, PCH share prices have been largely boosted lately. The rise of PCH shares has just caught the eyes of Cassie Yuan, who is responsible for the managing of 'The Fundamentals Strike Back' mutual fund (FSB). Cassie asks you, her assistant, to evaluate the value/fundamental aspects of PCH accordingly. Details of PCH and its industry (furniture and home products) are given as follows: Share price EPS P/E ROE Profit margin Total Asset Turnover Equity multiplier Debt to equity ratio # of shares outstanding (shrs) Revenues (Sales) Total Asset PCH $300 $30 10 N/A N/A N/A N/A 2 1,000,000 200,000,000 200,000,000 Industry $70 $10 7 20% 10% 1 2 1 (Note: N/A stands for "not available" and that you need to calculate it.) (D/E ratio appeared above includes ALL debts in the company (both S/T and L/T)) Po Concept Home (PCH) used to be a well-established but rather stable furniture company traded in the share market. The trading volume of company's stock in the Exchange was even thin. As a result, in an attempt to boost interests in PCH shares, its board of directors has recently appointed the new charismatic CEO, Jack Mars, who is also known to be financially aggressive in turning around a stagnant company. To the board of directors' delight, PCH share prices have been largely boosted lately. The rise of PCH shares has just caught the eyes of Cassie Yuan, who is responsible for the managing of 'The Fundamentals Strike Back' mutual fund (FSB). Cassie asks you, her assistant, to evaluate the value/fundamental aspects of PCH accordingly. Details of PCH and its industry (furniture and home products) are given as follows: Share price EPS P/E ROE Profit margin Total Asset Turnover Equity multiplier Debt to equity ratio # of shares outstanding (shrs) Revenues (Sales) Total Asset PCH $300 $30 10 N/A N/A N/A N/A 2 1,000,000 200,000,000 200,000,000 Industry $70 $10 7 20% 10% 1 2 1 (Note: N/A stands for "not available" and that you need to calculate it.) (D/E ratio appeared above includes ALL debts in the company (both S/T and L/T))

Answer rating: 100% (QA)

Equity Multiplier Equity Multiplier Total Assets Equity Equity Total Assets To... View the full answer