Question
Suppose today is January 1, 2022. The current market price (January 1, 2022) of stock a is $3.00. Assume that Amaan's outstanding share count is
Suppose today is January 1, 2022. The current market price (January 1, 2022) of stock a is $3.00. Assume that Amaan's outstanding share count is 2 million and this share does not change for the next 5 years. display excel
Using data from Table , for current year (t=0), prepare an excel model for companys financial ratio highlight based on the earning per share (EPS), price-to-earning (P/E), return on equity (ROE), Debt-to-Asset (D/A), Dividend per share (DPS), Dividend yield, and Price to book ratio (P/B).
| $ (in thousands) |
|
|
Year | 0 |
Income statement |
|
Sales | 1,500 |
Costs of goods sold | (750) |
Interest payments on debt | (32) |
Interest earned on cash and marketable securities | 5 |
Depreciation | (100) |
Profit before tax | 623 |
Taxes | (156) |
Profit after tax | 467 |
Dividends | (187) |
Retained earnings | 280 |
|
|
Balance sheet |
|
Cash and marketable securities | 80 |
Current assets | 150 |
Fixed assets |
|
At cost | 1,350 |
Depreciation | (300) |
Net fixed assets | 1,050 |
Total assets | 1,280 |
|
|
Current liabilities | 45 |
Debt | 635 |
Stock | 450 |
Accumulated retained earnings | 150 |
Total liabilities and equity | 1,280 |
|
|
Year | 0 |
Free cash flow calculation |
|
Profit after tax |
|
Add back depreciation |
|
Subtract increase in current assets |
|
Add back increase in current liabilities |
|
Subtract increase in fixed assets at cost |
|
Add back after-tax interest on debt |
|
Subtract after-tax interest on cash and mkt. securities |
|
Free cash flow |
|
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