Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Do this the correct way, no wrong answers please. Drawing from the data available ( $ in 000 s, except EPS), asses the following: Complete

Do this the correct way, no wrong answers please. image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Drawing from the data available ( $ in 000 s, except EPS), asses the following: Complete this question by entering your answers in the tabs below. How would you describe the trend in the company's rate of return on equity during the most recent eight years? Beginning five years ago, the company's rate of retum on equity has experienced a somewhat steady decline, essentially jcorresponding to a decline in shareholders' equity. Beginning five years ago, the company's rate of retum on equity has maintained a somewhat steady growth rato, essentially jcorresponding to a decline in shareholders' equity Beginning five years ago, the company's rate of relurn on equily has maintained a somewhat steady growth rate, ossentially corresponding to an increase in net income. Drawing from the data available ( $ in 000 s, except EPS), asses the following: Complete this question by entering your answers in the tabs below. Which of the following does not characterize the trend in the company's earnings per share during the most recent five EPS is increasing despite womening net income as a result of the number of shares declining by about one -third The company's EPS has maintained a steady growth rate, partially explaining an increase in the earnings price ratio The company's EPS is trending upward essentially corresponding to an increase in eamings ovor the same period of time. Drawing from the data avallable ( $ in 000 s, except EPS), asses the following: Complete this question by entering your answers in the tabs below. What was Antediluvian's rate of return on equity in 2016 and in 2021? You are an analyst for Lavish Wealth Management. One of the companies you follow is Antediluvian Industries, One of your clients has become concerned about a downward trend in Antedituvian's market price despite an upward trend in earnings per share. To assist in your explanation to your dubious client, you have created a Tableau Dashboard depicting the trend in EPS, the return on shareholders' equity, and various of their determinants. Price-Earnings Ratio EPS 3+abeou Complete this question by entering your answers in the tabs below. What does the Dashboard suggest about Antediluvian Industries? Antediluvian Industries is a new company whose opportunities for growth are apparent from the rising trends in return on equity. earnings per share, and earnings-price ratio. The company's management believes that share buybacks will result in a more realistic investment base, improving chances for future income growh. The company's opportunities for reirvesting its earnings and growing have peaked resulting in management concluding that shareholders are better off receiving funds in the form of higher dividend payouts and share buybacks than having earnings reinvested on their behalf. Drawing from the data available ( $ in 000 s, except EPS), asses the following: Complete this question by entering your answers in the tabs below. What might account for the change in shareholders' equity observed beginning five years ago? Antediluvian Industries is reinvesting a lower amount of its earnings each year and is buying back a large number of its putstanding shares Antediluvian Industries' retained earnings is decreasing and the company's paid-in capital is decreasing. The company's dividends are increasing, net income is decreasing and the number of outstanding shares is rising: Drawing from the data available (\$ in 000s, except EPS), asses the following: Complete this question by entering your answers in the tabs below. How might you explain to your client why the market price of Antediluvian Industries' stock is declining despite an upward trend in earnings per share over the past five years? EPS is increasing because earnings are declining at a slower rate than the docrease in the number of shares, and the ddeclining price-earnings ratio indicates that investors expect lower earnings in the future EPS is increasing. not due to increasing net income, but instead due to a rapid decrease in the number of shares The declining price-earnings ratio indicates that investors expect higher earnings to the future, and that expectation is reflected in lower current stock prices

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketplace Lending Financial Analysis And The Future Of Credit Integration Profitability And Risk Management

Authors: Ioannis Akkizidis, Manuel Stagars

1st Edition

1119099161, 978-1119099161

More Books

Students also viewed these Finance questions

Question

a valuing of personal and psychological privacy;

Answered: 1 week ago