Question
Use the following information for MFB, Inc. for this problem. MSB Inc.Assets Current assetsCash11,560Accounts receivable9,200Inventory 15,500 Total36,260Fixed assetsNet plant and equipment50,164Total assets86,424 Liabilities and owners'
- Use the following information for MFB, Inc. for this problem.
MSB Inc.AssetsCurrent assetsCash11,560Accounts receivable9,200Inventory15,500Total36,260Fixed assetsNet plant and equipment50,164Total assets86,424Liabilities and owners' equityCurrent liabilitiesAccounts payable7,000Notes payable5,600Total12,600Long-term debt20,000Owners' equityCommon stock and paid-in surplus31,500Accumulated retained earnings22,324Total53,824Total liabilities and owners' equity86,424Income statementSales72,000-Cost of goods sold26,200Gross Margin45,800-SG&A18,000-Depreciation3,600EBIT24,200-Interest paid2,000Taxable income22,200Taxes30%6,660Net income15,540Dividends40%6,216Retained earnings60%9,324Shares of stock outstanding14,000Market price per share28
- What is the equity multiplier and price to earnings (PE) ratio?
- A.1.668,29.32
- B.1.703,42.70
- C.1.635,37.27
- D.1.688,32.99
- E.1.606,25.23
- F.1.595,27.99
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
