Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2007 Cash and securities $1,290 Accounts receivable 9,890 Inventories 13,760 Total current assets $24,940 Net plant and equipment $18,060 Total assets $43,000 Liabilities and Equity Accounts payable $8,170 Notes payable 6,020 Accruals 4,730 Total current liabilities $18,920 Long-term bonds $8,815 Total debt $27,735 Common stock $5,805 Retained earnings 9,460 Total common equity $15,265 Total liabilities and equity $43,000 Income Statement (Millions of $) 2007 Net sales $51,600 Operating costs except depreciation 48,246 Depreciation 903 Earnings bef interest and taxes (EBIT) $2,451 Less interest 927 Earnings before taxes (EBT) $1,524 Taxes 533 Net income $990 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of $) $346.67 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 35% Year-end stock price $23.77 What is the firm's P/E ratio? Answer 12.0 12.6 13.2 13.9 14.6

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

Project Finance In Construction

Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani

1st Edition

1444334778, 978-1444334777

More Books

Students also viewed these Finance questions