Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please calculate the financial ratio and fill out the answer in year 2019 and 2018 (6 points). Ratio Analysis 2019 2018 Liquidity Ratios Current Ratio

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed
Please calculate the financial ratio and fill out the answer in year 2019 and 2018 (6 points). Ratio Analysis 2019 2018 Liquidity Ratios Current Ratio Leverage Ratio Debt to Total Asset Ratio Profitability Ratios Net Profit Margin Return on Asset Market Value Ratios Dividend per share Price-to-Earnings ratio 7. Using the financial data in question 6, you are interested to buy a stock of the IRPC. A company anticipated growth rate in dividends and earnings is 12% for the next 4 years before settling down to a constant 3% growth rate forever. The discount rate is 6%. Calculate the expected price of the stock. (6 points)6. IRPC Company has the following financial statements between 2018 and 2019. IRPC December 31 Balance Sheets (in thousands of dollars) Assets 2019 2018 Cash and cash equivalents $81.450 $54,625 Short-term investments $11,400 $15,100 Accounts Receivable $103,365 $85,527 Inventories $38,444 $34.982 Total current assets $234,659 $190,234 Fixed assets $67,165 $42,436 Total assets $301,824 $232,670 Liabilities and equity Accounts payable $30,761 $23,109 Accruals $30,477 $22,656 Notes payable $16,717 $14,217 Total current liabilities $77,955 $59,982 Long-term debt $66.264 $43.914 Total liabilities $144,219 $103,896 Common stock $100,000 $90,000 Retained Earnings $57,605 $38,774 Total common equity $157,605 $128,774 Total liabilities and equity $301,824 $232,670 IRPC December 31 Income Statements (in thousands of dollars) 2019 2018 Revenues $455,150 $364,120 Cost of Goods sold $386,878 $321,109 Gross Profit $68,272 $43,011 Expenses including Depreciation $7,388 $6,752 Earnings before interest and taxes $60,884 $36,259 Interest Expense $8,575 $7,829 Earnings before taxes $52.309 $28.430 Taxes (40%) $20.924 $11.372 Net profits $31,385 $17,058 Common dividends $15,693 $8,529 Other Data 2019 2018 Year-end Stock Price $18.25 $16.75 # of shares (in thousands) 10.000 10,000 Tax rate 259% 250%

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

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

15th edition

1337671002, 978-1337395250

More Books

Students also viewed these Finance questions

Question

Explain how trend reports of nonvalue-added cost can be used.

Answered: 1 week ago