Whats the P/E ratio, Total debt ratio, Debt equity ratio and Equity multiplier.
ID: 2660087 • Letter: W
Question
Whats the P/E ratio, Total debt ratio, Debt equity ratio and Equity multiplier. I beleive they want this calculated from the 2009 info however I included 2008 info incase needed.
Please show work very much appreciated.
1. as of December 31, 2009.
Accounts payable
$141,000
Accounts receivable
$103,000
Cash and cash equivalents
$154,000
CoGS
$224,700
Common Stock
$1,286,000
Depreciation
$37,000
Dividend payout ratio
40%
Interest paid
$43,000
Inventory
$129,000
Long-term debt
$1,254,000
Net Fixed Assets
$2,530,000
Sales
$330,000
Short-term debt
$132,000
Tax rate
35%
Number of shares
1,000,000
Price per share
$0.50
The following table presents the data for CanDo Inc. in as of December 31 2008:
Accounts payable
$104,000
Accounts receivable
$146,000
Cash and cash equivalents
$108,000
CoGS
$224,700
Common Stock
$1,286,000
Depreciation
$37,000
Dividend payout ratio
40%
Interest paid
$43,000
Inventory
$123,000
Long-term debt
$1,254,000
Net Fixed Assets
$2,467,000
Sales
$330,000
Short-term debt
$106,867
0Tax rate
35%
Accounts payable
$141,000
Accounts receivable
$103,000
Cash and cash equivalents
$154,000
CoGS
$224,700
Common Stock
$1,286,000
Depreciation
$37,000
Dividend payout ratio
40%
Interest paid
$43,000
Inventory
$129,000
Long-term debt
$1,254,000
Net Fixed Assets
$2,530,000
Sales
$330,000
Short-term debt
$132,000
Tax rate
35%
Number of shares
1,000,000
Price per share
$0.50
Explanation / Answer
Net income=25300
Less taxes=8855
Net profit=16445
PE ratio=PRice/Eps
=0.50/0.016
=31.25
Debt ratio=132000+1254000/2916000
=0.47
Debt equity ratio=1386000/1286000
=1.07
Equity multiplier=1286000/2916000
=0.44
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.