Question
Company O/P is a diversified media company that generates most of its revenues through newspapers sold around the country and around the world. Because the
Company O/P is a diversified media company that generates most of its revenues through newspapers sold around the country and around the world. Because the company is centered largely on one product, it has strong central controls. Competition for subscribers and advertising revenues in this firms segment is fierce. The company has also recently built a large office building for its headquarters.
Company O/P owns a number of newspapers in relatively small communities throughout the Midwest and the Southwest. Some analysts view this firm as holding a portfolio of small local monopolies in newspaper publishing. This company has a significant amount of goodwill on its balance sheet, stemming from acquisitions. Key to this firms operating success is a strategy of decentralized decision making and administration.
Provide 2-3 ratios to justify which company goes to which description:
0 P Industry Newspapers Market Data Beta 0.85 0.90 Price/Earings 20.541 13.29 Price to Book 2.07 3.09 Dividend Payout 37.53 30.81 Liquidity Current Ratio 0.88 0.55 Quick Ratio 0.68 0.39 Asset Management Inventory Turnover 33.35| 43.48 Receivables Tumover 10.98 8.50 Fixed Assets Turnover 3.43 2.59 Debt Management Total Debt Total Assets 15.45 26.72 LT Debt/Shareholders' 23.04 33.52 Interest Coverage After 7.63 6.56 DuPont Analysis Net Profit Margin 12.60 8.89 Asset Turnover 0.48 0.85 Return on Equity 9.86 20.89Step by Step Solution
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