Eisenhower Company: monetary value and value of dollar
Not what you're looking for?
See attached file.
1. Assume that the U.S. monetary value of a dollar is 100% (e.g., $1.00=$1.00), in 1956. The Eisenhower Company is worth is $5,000,000.00. Compare the monetary value of the dollar of .75 (e.g., $1.00=$.75), in 2005 to the 1956 monetary value:
a. What is the worth of the Eisenhower Company in 2005?
b. What is the present purchasing power of the Eisenhower Co., in 1956, in 2005?
c. What is the earnings per share (EPS), dividends per share (DPS), and book value per share for the Eisenhower Co., with 5,000 shares outstanding?
(See attachment for table).
2. Based on the value of the dollar in question one and the following salary structure for the Eisenhower Corporation calculate, analyze, and fully discuss the attached assumptions.
Purchase this Solution
Solution Summary
With all the calculations, the solutions clearly explains the problems and provides conclusions for the monetary value and value of dollar.
Solution Preview
See the attached file.
1. Assume that the U.S. monetary value of a dollar is 100% (e.g., $1.00=$1.00), in 1956. The Eisenhower Company is worth is $5,000,000.00. Compare the monetary value of the dollar of .75 (e.g., $1.00=$.75), in 2005 to the 1956 monetary value:
a. What is the worth of the Eisenhower Company in 2005?
Market to book ratio 1.2
Total assets = $2,000,000
Total debt = $1,000,000
Book value of Equity = Total assets - Total debt = $1,000,000
Market value of equity = Book value*market to book ratio = $1,200,000
Total market value of the company = market value of equity + market value of debt
= $1,200,000+$1,000,000= $2,200,000
Note: The market value of debt is equal to book value unless we have contrary information
Worth of the company in 1956 monetary value = ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Operations Management
This quiz tests a student's knowledge about Operations Management
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media