Question
WITH STEPS PLEASE Case 4 KFC has a return on equity of 10 percent, a retention ratio of 60 percent, and a profit margin of
WITH STEPS PLEASE
Case 4 KFC has a return on equity of 10 percent, a retention ratio of 60 percent, and a profit margin of 7 percent. The company paid $300 in dividends and has a net working capital of $850. Net fixed assets are $2,025 and current liabilities are $400. What is the total equity of the firm?
Case 5 Fendi Inc. has sales of $350,000. Earnings before interest and taxes are equal to 35 percent of sales. For the period, the firm paid $18,500 in interest. The tax rate is 34 percent. What is the profit margin (ROS)?
Case 7 BMW has 13,000 shares of stock outstanding at a market price of $19 a share. The earnings per share are $1.34. The firm has current assets of $49,000, net fixed assets of $220,000, and total liabilities of $187,000. Today, the firm is paying a cash dividend of $.40 a share. Ignore taxes. After the dividend, what is the firm's P/E ratio?
Case 8 CK has 18,000 shares of stock outstanding at a market price of $29 a share. The earnings per share are $2.30. The firm has total assets of $280,000 and total liabilities of $136,000. Today, the firm is paying an annual cash dividend of $1.40 a share. Ignore taxes. After the dividend, what is the firm's book value per share
Case 11 Crispy Cream has 21,000 shares of stock outstanding at a price per share of $37. The company believes the stock is currently underpriced and has decided to repurchase $100,000 worth of shares. After the repurchase, calculate the number of shares outstanding and the market price per share.
Case 12 LG has the following equity account balances: common stock of $18,000 with a $1 par value, capital surplus of $314,000, and retained earnings of $411,000. The stock has a market value of $48 a share. Assume the company issues a 15 percent stock dividend. What will the retained earnings account balance be after the dividend?
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