Use comparable firms for a PE analysis. Find three firms that can serve as comparables for COSTCO WHOLESALE CORPORATION to: Explain why you selected these firms. Explain why the comparable firms are not identical to your firm. Calculate and present the PE ratio for each of the comparable firms and Costco wholesale cor
Can you help me get started with this assignment? Describe and contrast the income statement, balance sheet, cash flow statement, and price-earnings ratio.
Nanotech Inc. had earnings after taxes of $380,000 in 2007 with 300,000 shares of stock outstanding. The stock price was $40.80. In 2008, earnings after taxes increased to $420,000 with the same 300,000 shares outstanding. The stock price was $50.00. - Compute earnings per share and the P/E ratio for 2007. The P/E ratio equ
Rutland Corp's stock price at the end of last year was $30.25 and its earnings per share for the year were $2.45. What was its P/E ratio? 11.65 12.00 12.35 12.70 13.05
1. Clark Company issued bonds with an interest rate of 10%. The company's return on assets is 12%. The company's return on common stockholders' equity would most likely: a. increase. b. decrease. c. remain unchanged. d. cannot be determined. 2. A company has just converted a long-term
Horse and Buggy Inc. is in a declining industry. Sales, earnings and dividends are all shrinking at a rate of 10 percent per year. If the discount rate is 15 percent and DIV1 is $3, what is the value of a share?
A) Raleigh Corp's total common equity at the end of last year was $300,000 and its net income after taxes was $55,000. What was its ROE? B) Rutland Corp's stock price at the end of last year was $30.25 and its earnings per share for the year were $2.45. What was its P/E ratio?
3. Lyons, Inc. earned $472 million in 2007 on a beginning book value of common equity of $2,200 million. The firm paid no dividends and had no stock transactions during 2007. The required return for its equity is 11%. At the end of 2007, its shares traded at a trailing P/E of 12.8. A. What growth rate in future residual ear
Dividend Policy. For each of the following four groups of companies, state whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have a relatively high or low price-earnings ratio. a. High-risk companies. b. Companies that have recently exper
Company A B Return on sales 5% 14% Return on Equity 22% 16% Which company would be better to own if the price earnings ratios were equal.
Trying to find the price-earnings ratio for the following. Thanks! JE, Inc has $6,400 in sales. The profit margin is 4 percent. There are 6,400 shares of stock outstanding. The market price per share is $1.20. What is the price-earnings ratio?
Question 13 Price/earnings (P/E) ratios: a. reflect the amount investors are willing to pay for each dollar of earnings. b. can be calculated using either forecast or historical earnings per share. c. can be estimated by dividing the firm's payout ratio by the difference between the required retu
For your convenience, I have attached an APA formatted MS Word file containing a case file involving the decison facing the Betty Black investment club, an organization that must make a decision to buy the stock of either New Soft Inc. or Capital Corp.
I know most of these answers but I want your expertise to confirm what I know is right; can anyone please help with the following questions? 1- How can a company with a high ROE have a low PE ratio? 2- What type of companies have: a. a high PE ratio and a low market-to-book ratio? b. a high PE ratio and a high market
For each of the following four groups of companies, state whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have a relatively high or low price-earnings ratio. a. High-risk companies. b. Companies that have recently experienced a temporary d
James Preston, the chief financial officer of Preston Resources, has been asked to do an evaluation of Dunning Chemical Company by the president and Chair of the Board, Sharon John. Preston Resources was planning a joint venture with Dunning (which was privately traded), and Sharon and James needed a better feel for what Dunning
If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year, what is the stock's current price?
P/E Ratios. Web Cities Research projects a rate of return of 20 percent on new projects. Management plans to plow back 30 percent of all earnings into the firm. Earnings this year will be $2 per share, and investors expect a 12 percent rate of return on the stock. a- What is the sustainable growth rate? b- What is the stoc
Many experts suggest that the PE ratio is an obsolete way to value firms. Why do they say that and what alternatives exist? Use the Library or other Web resources to find examples that support your answer.
R and R company currently has net income of $3 million and 1. million common shares outstanding which sell for $20 per share. R and R has decided to issue new stock to raise $4,000,000 to expand its operations. Rand R investment banker will sell the new shares for $18 per share with a spread of 7%. There will be a $60,000 reg
A and B, Inc. is primarily engaged in the worldwide production, processing, distribution, and marketing of food products. The following information is from its 2003 annual report: 2003 2002 Earnings per share $1.08 $1.14 Cash dividends per common share $0.80 $0.76 Market price per common share $12.94 $15.19 Com
For each of the following four groups of companies, state whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have a relatively high or low price-earnings ratio. a. High-risk companies. b. Companies that have recently experienced a temporary d
What does the price/earnings (P/E) ratio show? If one firm's P/E ratio is lower than that of another firm, name two factors that might explain the difference.
P/E ratios are a useful indicator and tool when performing valuation and comparing firms. List three factors that should be considered or adjusted for when comparing P/E ratios among different firms.
The corporation is evaluating an extra dividend vs. a share repurchase. In either case, $13,000 would be spent. Current earnings are $2.60 per share and the stock currently sells for $60 per share. There are 800 shares outstanding. Ignore taxes and other imperfections. I need help with determining the effect on the price per
You manufacture hunting pack systems in China for 80 dollars each, including shipping. The manufacturing costs only include variable costs. You sell these packs to retailers for 200 dollars each. In the current year you will sell 100,000 packs. Your fixed costs including such items as insurance, marketing, travel, shows, off
When Elgin Electronics was floated on the market six years ago it was recognised as a growth company, with significant opportunities as a growth company, with significant opportunities for profitable investment. Its profits performance has been in line with performance but its price earnings ratio has fallen over the last three
The price earnings ratios on Feb 8th 2006 for five companies traded on the London Stock Exchange are listed below. All the companies are quite well know and involved in retailing in the UK. Discuss the factors that might explain the differences between these price earnings ratios. Company Price/Earnings Ratio Boots 19.9 J
Please help answer the following problems. Provide explanations for each. Markowitz's main contribution to portfolio theory is: a. that risk is the same for each type of financial asset. b. that risk is a function of credit, liquidity and market factors. c. risk is not quantifiable. d. insight about the relat
Please help with the following problem: Valuation of a Company's Shares The price earnings ratios on Feb 8th 2006 for five companies traded on the London Stock Exchange are listed below. All the companies are quite well know and involved in retailing in the UK. Discuss the factors that might explain the differences betw