Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

1)What is the firm's EPS? 2)What is the firm's P/E ratio? B. M N Operating costs except depreciation 81,813 Depreciation 1,531 Earnings bef interest and

1)What is the firm's EPS?

2)What is the firm's P/E ratio?

image text in transcribedimage text in transcribed

B. M N Operating costs except depreciation 81,813 Depreciation 1,531 Earnings bef interest and taxes (EBIT) $ 4,156 Less interest 1.375 Earnings before taxes (EBT) $ 2,781 Taxes 973 Net income $ 1,808 Other data: Shares outstanding (millions) 500.00 Common dividends $632.73 Interst rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 35% Year-end stock price $43.39 Required: Calculate the following ratios: 1. Current Ratio 2. Quick Ratio 3. Days Sales Outstanding (use 365 days in a year) 4. Total Asset Turnover 5. Inventory Turnover Ratio 6. Times Interest Earned 7. Debt to Capital Ratio 8. Return on Assets 9. Return on Equity 10. Profit Margin 11. Return on Invested Capital The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2015 Cash and securities $ 2,500 Accounts receivable 11,500 Inventories 16,000 Total current assets $30,000 Net plant and equipment $20,000 Total assets $50,000 Liabilities and Equity Accounts payable $ 9,500 Accruals 5,500 Notes payable 7.000 Total current liabilities $22,000 Long-term bonds $15.000 Total liabilities $37,000 Common stock $ 2,000 Retained earnings 11,000 $13,000 Total common equity Total liabilities and equity $50,000 2015 Income Statement (Millions of $) Net sales $87,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-15

Authors: Jeffrey Slater

7th Edition

0130954888, 978-0130954886

More Books

Students explore these related Accounting questions