Your company has $100 M of sales and $80 M of expenses. Taxes are 30%. What...

Transcribed Image Text:

Your company has $100 M of sales and $80 M of expenses. Taxes are 30%. What are your profits? Assume you pay out 40% of profits as dividends. What is your dividend payment? Company X has $200M of sales and $140M of expenses. Taxes are 30% and the company pays out 50% of profits as dividends. What is the dividend payment? A company has 100 million shares outstanding and the price of the stock is $80. How much would you have to spend to buy the entire company? A company has 200 million shares outstanding. The company has earnings of $6 billion. What is the EPS?. The stock price is $300. What is the P/E? How much would you have to spend to buy the entire company? Company X has 100 million shares, a stock price of $120, and earnings of $600 million. What is the P/E? Company Y has 300 million shares, a stock price of $90, and earnings of $750 million. What is its P/E? Which stock is more expensive and why might that be the case? Your company has $100 M of sales and $80 M of expenses. Taxes are 30%. What are your profits? Assume you pay out 40% of profits as dividends. What is your dividend payment? Company X has $200M of sales and $140M of expenses. Taxes are 30% and the company pays out 50% of profits as dividends. What is the dividend payment? A company has 100 million shares outstanding and the price of the stock is $80. How much would you have to spend to buy the entire company? A company has 200 million shares outstanding. The company has earnings of $6 billion. What is the EPS?. The stock price is $300. What is the P/E? How much would you have to spend to buy the entire company? Company X has 100 million shares, a stock price of $120, and earnings of $600 million. What is the P/E? Company Y has 300 million shares, a stock price of $90, and earnings of $750 million. What is its P/E? Which stock is more expensive and why might that be the case?

Answer rating: 100% (QA)

Company with 100M in sales 80M in expenses and 30 taxes Profit before taxes 100M 80M 20M Profit afte... View the full answer