Solve These Equations: PRUFROCK CORPORATION (2012) $363 $2,311 Profit margin: ROA = ROE = (Dupont Identity) ROE

Solve These Equations: 

Transcribed Image Text:

PRUFROCK CORPORATION (2012) $363 $2,311 Profit margin: ROA = ROE = (Dupont Identity) ROE = Profit margin x Total asset turnover x Equity multiplier = 15.7% ( ) ( ) = 14% We assume that Prufrock has 33 million shares outstanding and the stock sold for $88 per share at the end of the year. The anticipated growth rate in EPS was 6 percent. EPS = NI Shares outstanding PEG ratio= = 15.7% Price-earning (PE) ratio = Price-sales ratio = $88 $2,311/33 Market-to-book-ratio = $363mm $33mm = 1.26 $11 PRUFROCK CORPORATION (2012) $363 $2,311 Profit margin: ROA = ROE = (Dupont Identity) ROE = Profit margin x Total asset turnover x Equity multiplier = 15.7% ( ) ( ) = 14% We assume that Prufrock has 33 million shares outstanding and the stock sold for $88 per share at the end of the year. The anticipated growth rate in EPS was 6 percent. EPS = NI Shares outstanding PEG ratio= = 15.7% Price-earning (PE) ratio = Price-sales ratio = $88 $2,311/33 Market-to-book-ratio = $363mm $33mm = 1.26 $11

Answer rating: 100% (QA)

ROANet IncomeTotal Asset 363 3588101 ROENet IncomeT... View the full answer