Q-6) You use the constant growth model to value RGB. 

Q-7) You use Price-to-carnings multiple. 

Q-8) You use Price-to-cash flow multiple.  

Transcribed Image Text:

RGB Inc. has reported its audited financial statements for the year-end 2018 and 2019 in Table 1. Table 1: Auditied Balance Sheet for 2018 YE Audited Dec 31, 2018 99 195 250 1,700 340 99 140 49 699 390 490 Balance Sheet Items Cash & marketable securities Accounts receivable Inventories Gross property, plant & equipment Accumulated depreciation Accounts payable Short term debt Current portion of the long term debt Long term debt Common stock Paid in capital Retained earnings For 2019, the audited income statement are presented in Table 3. Table 2: Audited Income Statement for 2019 YE Audited Income Statement Items Dec 31, 2019 4,900 Sales Cost of goods sold Operating expenditures Interest expense Taxes Audited Dec 31, 2019 105 295 310 3,090 550 59 190 1,890 390 110. 165. 55 619 390 490 RGB Inc. has reported its audited financial statements for the year-end 2018 and 2019 in Table 1. Table 1: Auditied Balance Sheet for 2018 YE Audited Dec 31, 2018 99 195 250 1,700 340 99 140 49 699 390 490 Balance Sheet Items Cash & marketable securities Accounts receivable Inventories Gross property, plant & equipment Accumulated depreciation Accounts payable Short term debt Current portion of the long term debt Long term debt Common stock Paid in capital Retained earnings For 2019, the audited income statement are presented in Table 3. Table 2: Audited Income Statement for 2019 YE Audited Income Statement Items Dec 31, 2019 4,900 Sales Cost of goods sold Operating expenditures Interest expense Taxes Audited Dec 31, 2019 105 295 310 3,090 550 59 190 1,890 390 110. 165. 55 619 390 490

Answer rating: 100% (QA)

To determine whether to buy sell or hold the shares of RGB Inc based on the provided information we need to analyze different aspects of the company L... View the full answer