earnings ratio and earnings per share. 1. Calculate the earnings per share and the P/E ratio...
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earnings ratio and earnings per share. 1. Calculate the earnings per share and the P/E ratio for Tom's. 2. Assume that Whole Food's EPS is $2.25 per share and the P/E ratio is 10x. Compare Tom's ratios to Whole Food's. What conclusions can you draw? Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Tom's management team is very concerned about its company's price- Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 2019 $2,145.00 $8,970.00 $12,480.00 $23,595.00 $15,405.00 $39,000.00 $7,410.00 $4,290,00 $5,460.00 $17,160.00 $7,800.00 $24,960.00 $5,460.00 $8,580.00 $14,040.00 $39,000.00 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions of $) Int. rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2019 $58,500.00 $54,698.00 1,025.00 $2,779.00 $829.00 $1,950.00 $682.00 $1,268.00 500 $443.63 6.25% 35% $30.42 earnings ratio and earnings per share. 1. Calculate the earnings per share and the P/E ratio for Tom's. 2. Assume that Whole Food's EPS is $2.25 per share and the P/E ratio is 10x. Compare Tom's ratios to Whole Food's. What conclusions can you draw? Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Tom's management team is very concerned about its company's price- Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 2019 $2,145.00 $8,970.00 $12,480.00 $23,595.00 $15,405.00 $39,000.00 $7,410.00 $4,290,00 $5,460.00 $17,160.00 $7,800.00 $24,960.00 $5,460.00 $8,580.00 $14,040.00 $39,000.00 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions of $) Int. rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2019 $58,500.00 $54,698.00 1,025.00 $2,779.00 $829.00 $1,950.00 $682.00 $1,268.00 500 $443.63 6.25% 35% $30.42
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Answer rating: 100% (QA)
SOLUTION To calculate the earnings per share EPS and priceearnings ratio PE ratio for Toms we need the net income and the number of shares outstanding ... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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