Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How do i determine the price earnings ratio? What is the market price per share and earnings per share? Barco Company Kyan Company Data from
How do i determine the price earnings ratio? What is the market price per share and earnings per share?
Barco Company Kyan Company Data from the current year-end balance sheets Assets Cash Accounts receivable, net 59, 36,400 130, 500 Merchandise inventory Prepaid expenses 280, Plant assets, net Total assets Liabilities and Equity 101, 300 $ 67,340 turrent liabilities 107 , 4 103, ooo Longterm notes payable 42, 500 418, o 206, ooo 160,o Common stock, $5 par value 206, 160, 121, 200 121, Retained earnings Data from the current income statement Sales Cost of goods sold Interest expense Income tax expense Net income year's $ 22, 84 , 740 5,200 $ 428,340 79,800 $ 428,340 $ 31,000 7,200 303, 400 $ 531,500 $ 531,500 Barco Company $5 780, 589, 10 8,400 14,992 167 , 508 5.23 3.77 Kyan Company $ 905,200 638,500 18, 24,990 223,71 5.43 3.94 Basic earnings per share Cash dividends per share Beginning-ofyear balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 31,800 57 , 600 74,332 $ 56,200 59,818 Total liabilities and equity 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (4 return on equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (0 dividend yields. 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Ret On 2A Price Earn 2A Div Yield Ratio Equity Assets Turn Ratio Req 2B Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. (e) Company Numerator: I Prjge:EarningsRatjo Denominator: arnings per share arket price per common share Barco Kyan Price-Earnings Ratio Price-earnings ratio 0 times 0 times 2A Ret on Equity 2A Div Yield
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started