Question
Analyze the Financial Statements of Pettijohn Inc. and calculate the metric 14 - 25 in table below. 14. Whats the firms EPS 15. What is
Analyze the Financial Statements of Pettijohn Inc. and calculate the metric 14 - 25 in table below.
14. Whats the firms EPS
15. What is the firm's total assets turnover
16. What is the firm's dividends per share?
17. What is the firm's book value per share?
18 What is the firm's current ratio?
19. What is the firm's quick ratio?
20. What is the firm's ROA?
21. What is the firm's profit margin?
22. What is the firm's EBITDA coverage?
What is the firm's days sales outstanding?
23. Assume a 360-dav vear for this calculation
24. What is the firm's TIE?
25. What is the firm's equity multiplier?
1. Analyze the Financial Statements of Pettijohn Inc. and calculate the metric 1 - 25 in table below. (1 Mark) 2. Analyze the metrics and comment on financial health of the organization (500 words minimum). (5 Marks) 3. Assume the expected return is 10%, risk free rate is 2%, market risk is 4%. What is Pettijohn's Beta? (1 Mark) 4. What does this beta mean? Do you want the beta to increase or decrease? (200 words minimum) (2 Marks) 5. Assume the $10,920 Long-Term Bond matures in 15 years with interest and principal to be paid at the end. At the current rate of 6.25% What is the value of the debt at maturity? (1 Marks) Industry \begin{tabular}{lrr} Pettijohn Inc. & & \\ Balance Sheet (Millions of \$) & 2017 & 2016 \\ Assets & & \\ 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} \begin{tabular}{lrr} Liabilities and Equity & & \\ 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 & - & \\ 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 & \end{tabular} Other data: Shares outstanding (millions) 175.00 Common dividends (millions) 825.15 Interest rate on notes payable \& L-T bonds 6.25% Federal plus state income tax rate 0.35 Year-end stock price 55.00 Tax rate 35.00% WAcC WACC10.00%Step by Step Solution
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