Use the following Information about Company X to help answer problems 1-10. Company X went public at the start of 2016; $100M shares of stock were issued at $18.60 per share. At the end of 2016, Company X traded at $20.00 per share. During 2017, Company X Issued 5M shares at $20.00 per share, thus raising $100M of capital At the end of 2017, Company X traded at $20.46 per share. A summary of Company X's 2016 and 2017 10k are presented in the tables below. Assume Company X did not sell any long term assets during the first two years of the company's operations. in USD) Price per Shore $ (in million) Shares Outstanding 12/31/2017 20.46 $ 12/31/2017 1 05 12/31/2016 20.00 12/31/2016 100 12/31/2016 1800 320 2,000 140 (in USD millions) Shares sued $ Sales S Operating Income S Net Long Term Assess Net Income S Marketable Securites s Long Term Debt S Inventory Interest Expense S Dividends Poids Depreciations Current Portion Long Term Debt S Cash S Accounts Recievables Accounts Payable s 12/31/2017 100 $ 1700 S 340 $ 2,340 S 150 $ 60 $ 1,100 S BOOS 1405 50 260 $ 300 $ 400 $ 400 s 400 $ 12/31/2017 5 Stage DuPont ROE Tax Burden Ratio Interest Burden Ratio Operating Margin Total Asset Turnover Ratio Leverage Ratio 2/31/2016 0.7000 0.6250 0.2000 0.4571 17500 It is recommended you carefully organize an Income statement and balance sheet when attempting these problems. Remember to make sure your balance sheet balances (TA=TL+EOY SE). 1. In 2016, Company X's Return on Equity, where ROE=N/EOY SE, is cosest to a. 6.5% b. 6.6% c. 7.0% d. 7.4% e. 7.5% 2. In 2016, Company X's effective tax rate is closest to: a. 20% b. 25% c. 28% d. 30% e. 32% 3. In 2016, Company X's EBITDA is closest to: a. $320M b. $440M C. $460M d. $520M e. $640M 4. At the end of 2016, Company X's P/S ratio is closest to: a. 0.80 b. 1.09 C. 1.16 d. 1.18 e. 1.25 5. At the end of 2017, Company X's Market Cap is closest toi a. $2,046M b. $2,050M c. $2,100M d. $2,148M e. $2,455M 6. Ignore your answer to the previous question. At the end of 2017, Assume Company X has a market cap is $2,500M and the S&P 500 has a P/E ratio of 17.5. Company X is expensive relative to the market. Evaluate the underlined words in italics. True or False? a. True b. False