Question: 5. Using the following information: 2016 2015 Sales 2,000,000.00 0.00 Cost Of Goods Sold - % of sales 75% 0.00 SG&A 230000.00 0.00 Depreciation (%)


5. Using the following information: 2016 2015 Sales 2,000,000.00 0.00 Cost Of Goods Sold - % of sales 75% 0.00 SG&A 230000.00 0.00 Depreciation (%) 10% 0.00 New Debt Issued 200,000.00 100,000.00 Issued Short term Commercial Paper 100,000.00 10,000.0 Interest Rate on borrowed funds 10.00% 0.00 Common Stock Issued $ 800,000.00 100,000.00 Shares Issued 40,000.00 10,000.00 Cash 60,000.00 Receivable 150,000.00 50,000.00 Inventory 120,000.00 30,000.00 Property, Plant & Equipment (PPE) - cost 1,000,000.00 100,000.00 Payables 90,000.00 30,000.00 Current Taxes 20,000.00 Common Dividend rate 20% The stock market price is $40 Compute: a. Dividend per share and dividend yield. b. Earning per share and PE ratio c. Book Value, Book Value per share and Market to Book ratio. d. Net working capital, current ratio and quick ratio. If the industry current ratio is one, what could you say about this firm current asset management? What if the industry current ratio is 1.00? e. - Total debt ratio, long term debt to equity ratio and interest coverage ratio. If the industry coverage ratio is 5, will you recommend this firm to borrow more? f. Compute ROE
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