Telesoft Corp. traded at a price-to-book ratio of 0.98 in May 1999 after reporting an ROCE of

Question:

Telesoft Corp. traded at a price-to-book ratio of 0.98 in May 1999 after reporting an ROCE of 52.2 percent. Does the market regard this ROCE as normal, unusually high, or unusually low?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial statements

ISBN: 978-007802531

5th Edition

Authors: Stephen Barrad

See More Books

Question Posted: Mar 17, 2012 06:14 AM

See More Questions

A price to book ratio considers a. profits relative to earnings b. price of the stock relative to earnings c. profits relative to equity d. price of the stock relative to equity
Applause Company has a market to book ratio of 0.75 to 1. Bravo Company has a market to book-value ratio of 3.4 to 1. What information does the market-to-book-value ratio capture and what does this...
Calculate the P/E ratio and the price to book ratio for Buffalo Outback Outfitters?
Assume that a company is going to invest 900,000 USD in a new project. We expect that the invested capital in the fixed assets will be fully depreciated within 3 years in a linear way. The project is...
Dana Dodson died October 31, 2012, with a gross estate of $6.7 million, debts of $200,000, and a taxable estate of $6.5 million. Dana made no adjusted taxable gifts. All of her property passed under...
Q.3 Parallel opposite load plates are separated by 4.84 mm. There is a potential difference of 600 V between the plates. a) What is the amplitude of the electric field between the plates? B) What is...
Global Quality Ltd produces two types of embossing machines, a standard model and a deluxe model. The budgeted factory overhead costs for the production operation during 2025 are as follows....
Beta Watches completed the following selected transactions during 2011 and 2012: 2011 Dec 31 Estimated that uncollectible account expense for the year was 3% of credit sales of $440,000 and recorded...
Zeing Manufacturing pays taxes of 20% on all pre-tax income up to and including $200,000. For pre-tax income above $200,000, the tax rate is 32%. If Zeing Manufacturing's contribution margin ratio is...
The statement of cash flows for Riker Company (prepared using the indirect method) follows. Consider the following additional information: (a) Sales for the year totaled $812,350. Cost of goods sold...
Jetform Corporation traded at a price-to-book ratio of 1.01 in May 1999. 1ts most recently reported ROCE was 10.1 percent, and it is deemed to have a required equity return of 10 percent. What is...
A share trades at a price-to-book ratio of 0.7. An analyst who forecasts an ROCE of 12 percent each year in the future, and sets the required equity return at 10 percent, recommends a hold position....
You have just graduated from the MBA program of a large university, and one of your favorite courses was Todays Entrepreneurs. In fact, you enjoyed it so much you have decided you want to be your own...
Let's consider a football sled of mass 200kg. When coach blows his whistle, a lineman applies a 2500N force for 5s. Assuming nothing stops the sled or slows it down, what would its final velocity be...
Provide an additional play-centered game to help develop letter awareness game and oral language.
On 1st January, 2015, Vinod drew and Pramod accepted a bill at three months for ~ 2,000. On 4th January, 2015 Vinod discounted the bill with his bank at 15% p.a. and remitted half the proceeds to...
The phase of the satellite is 45d and the phase of the receiver is 165d. The wave length is 500 cm. (a) What is the phase difference? (b) What is the corresponding wavelength for the phase difference
An aircraft weighs 139,209 lbs. If the acceleration is 7.47 ft/sec^2, what is the net force, in pounds, applied to the aircraft?
How are vision and mission related to strategy? What roles does strategic leadership play in realizing vision and mission?
Organizations are increasing their use of personality tests to screen job applicants. What are some of the advantages and disadvantages of this approach? What can managers do to avoid some of the...
The gas-phase reaction of nitrogen dioxide with fluorine proceeds to form nitrosyl fluoride, NO 2 F. Determine whether the following mechanism provides the correct overall stoichiometry, and identify...
Suppose John commenced business on 1 January, 2016. During the year ending 31 December, 2016, he bought a quantity of leather shoes at a uniform cost and sold 5,800 of them at $50 each. An inventory...
The calculation of operating profit may include three of the following four expenses. Which one is not included? (a) Rent payable. (b) Depreciation. (c) Loan interest. (d) Insurance.
Selling and administrative expenses include: (a) Salaries. (b) Rent. (c) Utilities. (d) All of the above.
A rhino is charging at you, so decide to sedate it with a tranquilizer gun angled at 40 as shown above. The tranquilizer gun can reach a horizontal distance of 49 m when angled at 45. (Assume ideal...
What is the definition of motivation and how can the chef foster an environment of motivation in the kitchen? What methods can a chef implement to motivate the kitchen team? What factors contribute...
Article Review Read the article. Link is given below: https://www.projecttimes.com/articles/avoid-the-top-three-real-causes-of-scope-creep.html Post your thoughts on this article, add references if...

Telesoft Corp. traded at a price-to-book ratio of 0.98 in May 1999 after reporting an ROCE of

Question:

Step by Step Answer:

A PB of 10 implies a future ROCE equal ...View the full answer

Financial statements

Students also viewed these Accounting questions