Question
Balance Sheet (Millions of $) Assets2016 Cash and securities$2,145 Accounts receivable8,970 Inventories12,480 Total current assets$23,595 Net plant and equipment$15,405 Total assets$39,000 Liabilities and Equity Accounts
Balance Sheet (Millions of $)
Assets2016
Cash and securities$2,145
Accounts receivable8,970
Inventories12,480
Total current assets$23,595
Net plant and equipment$15,405
Total assets$39,000
Liabilities and Equity
Accounts payable$7,410
Accruals4,290
Notes payable5,460
Total current liabilities$17,160
Long-term bonds$7,800
Total liabilities$24,960
Common stock$5,460
Retained earnings8,580
Total common equity$14,040
Total liabilities and equity$39,000
Income Statement (Millions of $)
2016Net sales$58,500
Operating costs except depreciation54,698
Depreciation1,024
Earnings before interest and taxes (EBIT)$2,779
Less interest829
Earnings before taxes (EBT)$1,950
Taxes683
Net income$1,268
Other data:Shares outstanding (millions)500.00
Common dividends (millions of $)$443.63
Int rate on notes payable & L-T bonds6.25%
Federal plus state income tax rate35%
Year-end stock price$30.42
Refer to Exhibit 4.1.What is the firm's market-to-book ratio?Do not round your intermediate calculations.
a. 1.08
b. 1.01
c. 1.35
d. 1.18
e. 1.09
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
