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A. has already been conpleted below b. Analyze the information you have. Do you think this company is in a position to meet the parameters
A. has already been conpleted below
b. Analyze the information you have. Do you think this company is in a position to meet the parameters illustrated by Warren Buffett to do a repurchase? Defend your answer. (10 points) Why does the PE ratio drop from the beginning value after the company does a dividend or a repurchase? (5 points) d. At least in theory, does it matter whether or not a company does a repurchase or a buyback. Defend your answer and think about it from both the investor and company's point of view. (6 points) e. What could this company do if it wanted to raise its growth rate? Identity at least 3 things the company could do and explain how these actions will increase the growth rate. (points) Sales Cost of Goods Sold $1,250,000 $825,000 14.00% $8.50 Required Return Share Price Dividend Yield Current EPS Current PE 8.78% $1.30 6.51 Gross Profit Selling & Administrative Depreciation EBIT Interest Expense Taxable income Taxes Net Income Shares Outstanding $425,000 $310,000 $28,000 $87,000 $4,000 $83,000 $17,430 $65,570 50,250 Cash $138,000 $135,000 $24,000 Accounts Receivable $50,000 $150,000 Inventory $185,000 Accounts Payable Notes Payable Current Liabilities Long-Term Debt Total Liabilities Equity Total LE $312,000 Current Assets $200,000 Fixed Assets $500,000 $385,000 $427,000 $812,000 Total Assets $812,000 Dividend per share Total Dollar Value of Repurchase/Dividend Dividend Payout Retention Ratio ROE Growth rate Intrinsic Value of the Stock Repurchase New Prices New Shares New EPS New PE Investor Value per Share Dividend New Prices New Shares New EPS New PE Investor Value per Share Dividend PS 74630875" 850 TDV repurchased dividende 37501.575- 748350250 dividend payout 571537501.575/65570 retention to 42811-05719 ROE -15,38% net incomalequity shareholder 1000 Growth rate 6.57% 15.5894281 intrinsic value = $10.70 7463*1.06577 14-0.0567) Repurchased new prions now shares new eps New PE investor value per show Dividend now price new shares new eps New Pe investor volue per share E Government spending and investing could increase the growth rate by increasing GOP a. Complete the box. Each line item is worth 2 points each. (34 points) b. Analyze the information you have. Do you think this company is in a position to meet the parameters illustrated by Warren Buffett to do a repurchase? Defend your answer. (10 points) c. Why does the PE ratio drop from the beginning value after the company does a dividend or a repurchase? (5 points) d. At least in theory, does it matter whether or not a company does a repurchase or a buyback. Defend your answer and think about it from both the investor and company's point of view. (6 points) 8. What could this company do if it wanted to raise its growth rate? Identify at least 3 things the company could do and explain how these actions will increase the growth rate. (9 points) b. Analyze the information you have. Do you think this company is in a position to meet the parameters illustrated by Warren Buffett to do a repurchase? Defend your answer. (10 points) Why does the PE ratio drop from the beginning value after the company does a dividend or a repurchase? (5 points) d. At least in theory, does it matter whether or not a company does a repurchase or a buyback. Defend your answer and think about it from both the investor and company's point of view. (6 points) e. What could this company do if it wanted to raise its growth rate? Identity at least 3 things the company could do and explain how these actions will increase the growth rate. (points) Sales Cost of Goods Sold $1,250,000 $825,000 14.00% $8.50 Required Return Share Price Dividend Yield Current EPS Current PE 8.78% $1.30 6.51 Gross Profit Selling & Administrative Depreciation EBIT Interest Expense Taxable income Taxes Net Income Shares Outstanding $425,000 $310,000 $28,000 $87,000 $4,000 $83,000 $17,430 $65,570 50,250 Cash $138,000 $135,000 $24,000 Accounts Receivable $50,000 $150,000 Inventory $185,000 Accounts Payable Notes Payable Current Liabilities Long-Term Debt Total Liabilities Equity Total LE $312,000 Current Assets $200,000 Fixed Assets $500,000 $385,000 $427,000 $812,000 Total Assets $812,000 Dividend per share Total Dollar Value of Repurchase/Dividend Dividend Payout Retention Ratio ROE Growth rate Intrinsic Value of the Stock Repurchase New Prices New Shares New EPS New PE Investor Value per Share Dividend New Prices New Shares New EPS New PE Investor Value per Share Dividend PS 74630875" 850 TDV repurchased dividende 37501.575- 748350250 dividend payout 571537501.575/65570 retention to 42811-05719 ROE -15,38% net incomalequity shareholder 1000 Growth rate 6.57% 15.5894281 intrinsic value = $10.70 7463*1.06577 14-0.0567) Repurchased new prions now shares new eps New PE investor value per show Dividend now price new shares new eps New Pe investor volue per share E Government spending and investing could increase the growth rate by increasing GOP a. Complete the box. Each line item is worth 2 points each. (34 points) b. Analyze the information you have. Do you think this company is in a position to meet the parameters illustrated by Warren Buffett to do a repurchase? Defend your answer. (10 points) c. Why does the PE ratio drop from the beginning value after the company does a dividend or a repurchase? (5 points) d. At least in theory, does it matter whether or not a company does a repurchase or a buyback. Defend your answer and think about it from both the investor and company's point of view. (6 points) 8. What could this company do if it wanted to raise its growth rate? Identify at least 3 things the company could do and explain how these actions will increase the growth rate. (9 points) Step by Step Solution
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