f. Calculate the 2014 price/earnings ratio, price/cash flow ratio, and market/book ratio. Do these ratios indicate that investors are expected to have a high or low opinion of the company? * g. Perform a common size analysis and percentage change analysis. What do these analyses tell you about Computron? &. h. Use the extended DuPont equation to provide a summary and overview of Computron's financial condition as projected for 2014. What are the firm's major strengths and weaknesses? i. What are some potential problems and limitations of financial ratio analysis? j. What are some qualitative factors that analysts should consider when evaluating a company's likely future financial performance? 2) Required Annaity Paymentx:Assume that your father is now 50 yearn old. phana ta trtare in 10 yearh, and expects to live for 25 years after he fetirn, that it, antil agr as. Ble wants his first retrement payment to have the same purthaing pewer at the time he setiret as 640,000 has today He wants all of his subsequent retirement paymenta to be equal to his first retirement peranent. Do not let the vetirntent permects grew with inflation. Youz father realizes that if inflatioe accurn, the real ralue of hai retirement income will dreline year th year after he retires. Hin retiremeat income will begin the day be retires, 10 years from today and he will then recaive 34 additional anaual payments. Enfiation is expected to be 3 per cent pet peat from today forward. He currently has 100000 saved and expects to earm a return oe his savings of 8 per cent per yeat, with ananal compounditg. To the nearest euro. bow mach must he save during each of the next 10 year (writh nqual depesits heing made at the end of each year, beginning a year from toelay) to meet his retirmett zoal? iNote: Neither the amount he saves noe the amosant he withalraws apeat metirethens at a growing annuity.) f. Calculate the 2014 price/earnings ratio, price/cash flow ratio, and market/book ratio. Do these ratios indicate that investors are expected to have a high or low opinion of the company? * g. Perform a common size analysis and percentage change analysis. What do these analyses tell you about Computron? &. h. Use the extended DuPont equation to provide a summary and overview of Computron's financial condition as projected for 2014. What are the firm's major strengths and weaknesses? i. What are some potential problems and limitations of financial ratio analysis? j. What are some qualitative factors that analysts should consider when evaluating a company's likely future financial performance? 2) Required Annaity Paymentx:Assume that your father is now 50 yearn old. phana ta trtare in 10 yearh, and expects to live for 25 years after he fetirn, that it, antil agr as. Ble wants his first retrement payment to have the same purthaing pewer at the time he setiret as 640,000 has today He wants all of his subsequent retirement paymenta to be equal to his first retirement peranent. Do not let the vetirntent permects grew with inflation. Youz father realizes that if inflatioe accurn, the real ralue of hai retirement income will dreline year th year after he retires. Hin retiremeat income will begin the day be retires, 10 years from today and he will then recaive 34 additional anaual payments. Enfiation is expected to be 3 per cent pet peat from today forward. He currently has 100000 saved and expects to earm a return oe his savings of 8 per cent per yeat, with ananal compounditg. To the nearest euro. bow mach must he save during each of the next 10 year (writh nqual depesits heing made at the end of each year, beginning a year from toelay) to meet his retirmett zoal? iNote: Neither the amount he saves noe the amosant he withalraws apeat metirethens at a growing annuity.)
