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Analyze the Financial Statement of Pettijohn Inc. and calculate the metrics below. 9. What is the firms EVA? 10. What is the firms ROE? 11.
Analyze the Financial Statement of Pettijohn Inc. and calculate the metrics below.
9. What is the firms EVA?
10. What is the firms ROE?
11. What is the firms market-to-book ratio?
12. What is the firms P/E ratio?
Pettijohn Inc. Balance Sheet (Millions of \$) 20172016 Assets \begin{tabular}{lrr} Cash and securities & 244 & 390 \\ Accounts receivable & 7,530 & 6,940 \\ Inventories & 10,980 & 9,570 \\ \hline Total current assets & 18,754 & 16,900 \\ Net plant and equipment & 17,990 & 18,230 \\ \hline Total assets & 36,744 & 35,130 \\ \hline \end{tabular} Liabilities and Equity \begin{tabular}{lrr} Accounts payable & 6,990 & 6,850 \\ Notes payable & 5,320 & 5,900 \\ Accruals & 4,120 & 3,900 \\ \hline Total current liabilities & 16,430 & 16,650 \\ Long-term bonds & 10,920 & 10,920 \\ \hline Total debt & 27,350 & 27,570 \\ Common stock & 3,360 & 3,360 \\ Retained earnings & 6,034 & 4,200 \\ \hline Total common equity & 9,394 & 7,560 \\ \hline Total liabilities and equity & 36,744 & 35,130 \\ \hline \end{tabular} \begin{tabular}{lr} Income Statement (Millions of \$) & 2017 \\ Net sales & 51,561 \\ Operating costs except depr'n & 47,252 \\ Depreciation & 980 \\ \hline Earnings before interest and taxes (EBIT) & 3,329 \\ Less interest & 508 \\ \hline Earnings before taxes (EBT) & 2,821 \\ Taxes & 987 \\ \hline Net income & 1,834 \\ \hline \end{tabular} Other data: Shares outstanding (millions) 175.00 Common dividends (millions) 825.15 Interest rate on notes payable < bonds 6.25% Federal plus state income tax rate 0.35 Year-end stock price 55.00 Tax rate 35.00% WACC10.00%
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