12. MG Corp is a big & growing company with 10mil shares at RM1 par value issued &

outstanding. The companys 1994 profits after tax is RM2 mil, an increase of 20% from

1993 figures. The company has declared a dividend payment totaling RM360,000 to all

its shareholders. The companys current share price is RM3.60 and the value of its total assets is RM14 million. The comp shareholders equity is RM8 million. Calculate:

a. EPS	e. ROE
b. DPS	f. PER
c. DY	g. BVPS
d. DPOR	h. ROI

13. Last years sales for Abrar Bhd was RM10 million. Its assets turnover ratio was 4 times

and net profit after tax was RM2 million. What is the companys return on assets for the year?

14. Wawasan Bhd has sales of RM12 million and net profit margin of 6%. Its 9.5 million common shares are now traded at RM5 per share. The companys retention rate is

45%. Determine:

a) EPS

b) PER

c) DPS

d) EPS - ie if the price increases to RM7 per share and PER remain the same.

15. Campbeltowns EBIT is RM350,000. It has interest charges of RM15,000, taxes of RM85,000, total assets of RM1.5 million and total liabilities of RM600,000. What is the return on equity?

16. The net income of Abury Corp is RM120,000 and it has 35,000 shares outstanding, currently at RM27.50. What is the firms PER?

17. Mosmans stock is selling at RM21 per share. It has an EPS of RM8 and paid a RM2.50

dividend. What is the dividend payout9 Dividend yield?

18. A firm has earning per share of RM9 and a dividend payout of 35%. An investor required

a 15% return on this kind of investment. The firms growth rate is 6% annually. What is the intrinsic value of the stock?

19. Financial Learning Systems has 2.5 million shares of common stock outstanding and

100,000 shares of preferred stock. (The preferred pays annual cash dividends of RM5 a share, and the common pays annual cash dividends of 25 cents a share). Last year, the company generated net profits (after taxes) of RM6,850,000. The companys balance sheet shows total assets of RM78 million, total liabilities of RM32 million, and RM5 million

in preferred stock. The firms common stock is currently trading in the market at RM45

a share.

a. Given the preceding information, find the EPS, P/E ratio, and book value per share.

b. What will happen to the price of the stock if EPS rises to RM3.75 and the P/E ratio stays where it is? What will happen if EPS drops to RM1.50 and the P/E ratio doesnt change?

c. What will happen to the price of the stock if EPS rises to RM3.75 and the P/E ratio jumps to 25 times earnings?

d. What will happen if both EPS and the P/E ratio drop-to RM1.50 and 10 times earnings, respectively?

e. Comment on the effect that EPS and the P/E ratio have on the market price of the stock.

20. The Buffalo Manufacturing Company has total assets of RM10 million, and asset turnover

of 2.0 times, and a net profit margin of 15%. a. What is Buffalos return on assets?

b. Find Buffalos ROE, given that 40% if the assets are financed with stockholders

equity.

21. Find the EPS, P/E ratio, and dividend yield of a company that has 5 million shares of common stock outstanding (the shares trade in the market at RM25), earns 10% after taxes on annual sales of RM150 million, and has a dividend payout ratio of 35%.

22. The Amherst Company has net profits of RM10 million, sales of RM150 million, and 2.5 million shares of common stock outstanding. The company has total assets of RM75 million and total stockholders equity of RM45 million. It pays RM1 per share in common dividends, and the stock trades at RM20 per share. Given this information, determine the following:

a. Amhersts EPS.

b. Amhersts book value per share and price-to-book-value ratio.

c. The firms P/E ratio.

d. The companys net profit margin.

e. The stocks dividend payout ratio and its dividend yield.

f. The stocks PEG ratio, given that the companys earnings have been growing at an average rate of 7.5%.