Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Equity analysis ratios) Two companies in the transportation industry had the following information: Company 1 Company 2 Basic earnings per share $0.95 $0.61 Market price

image text in transcribedimage text in transcribed

(Equity analysis ratios) Two companies in the transportation industry had the following information: Company 1 Company 2 Basic earnings per share $0.95 $0.61 Market price per share $12.78 $26.89 Dividends per share $0.504 $0.529 Cash flows from operating activities ($ thousands) $68,570 $217,261 Net capital expenditures ($ thousands) $5,788 $69,590 Calculate the P/E ratios for both companies. (Round answers to 1 decimal place, e.g. 18.4.) Company 1 Company 2 times times Price-earnings ratio Calculate the dividend payout ratio and dividend yield for both companies. (Round dividend payout ratio to 1 18.4% and Dividend yield to 2 decimal place, e.g. 13.61%.) Company 1 Company 2 % % Dividend payout ratio % % Dividend yield e Textbook and Media Question Part Score Determine the net free cash flows of both companies. Company 1 Company 2 $ $ Net free cash flows (in thousands)

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

The Essential Controller An Introduction To What Every Financial Manager Must Know

Authors: Steven M. Bragg

2nd Edition

1118169972, 9781118169971

More Books

Students also viewed these Accounting questions

Question

Appreciate common obstacles to performance appraisals

Answered: 1 week ago

Question

Recognize traditional approaches to performance appraisals

Answered: 1 week ago