Question: only give answer if you are going to answer both of them i ll give upvote for the complete and accurate answer thank you Broward

 only give answer if you are going to answer both of

them i ll give upvote for the complete and accurate answer thank

only give answer if you are going to answer both of them i ll give upvote for the complete and accurate answer thank you

Broward Manufacturing recently reported the following information: Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (R/S), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. BEP: % ROE: % ROIC % Ferrell Inc. recently reported net income of $8 million. It has 340,000 shares of common stock, which currently trades at $57 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $12.8 million. Over the next year, it also anticipates issuing an additional 51,000 shares of stock so that 1 year from now it will have 391,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!