# Cash Flows, Growth Rate and EPS

1.8

For a given share price of a firm's stock, the lower the EPS the lower the price-earnings ratio.

true or false?

1.9 Cash flows from operating activities relate to the buying and selling of long-term assets.

true or false?

1.11

Growth rate: Petry Corp. is a growing company with sales of $1.25 million this year. The firm expects to grow at an annual rate of 25 percent for the next three years, followed by a growth of 20 percent per year for the next two years. What will be Petry's sales at the end of five years? (Round to the nearest percent.)

show work

1.13

Franklin Foods announced that its sales were $1,233,450 this year. The company forecasts a growth rate of 16 percent for the foreseeable future. How long will it take the firm to produce earnings of $3 million? (Round off to the nearest year.)

show work

1.14

FV of multiple cash flows: International Shippers, Inc., have forecast earnings of $1,233,400, $1,345,900, and $1,455,650 for the next three years. What is the future value of these earnings if the firm's opportunity cost is 13 percent? (Round to the nearest dollar.)

show work

© BrainMass Inc. brainmass.com October 10, 2019, 7:55 am ad1c9bdddfhttps://brainmass.com/business/finance/cash-flows-growth-rate-eps-600240

#### Solution Summary

This solution shows step-by-step calculations to determine sales value, earnings and future value of earnings. It also identifies the correct answer for concepts on multiple cash flows, price-earnings ratio, long-term assets and more.