Fin 520 Mid-Term - N ame _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _...

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Name _____________________ _ Multi-part: The balance sheet and income statement shown below are for Pettijohn 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 Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabili ties and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Cornmon stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depr'n Depreciation Earnings bef int and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends lnt rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2010 $1,554.0 9,660.0 13,440.0 $24,654.0 l7,346.0 $42,000.0 $7,980.0 5,880.0 4,620.0 $18,480.0 10,920.0 $29,400.0 3,360.0 9,240.0 $12,600.0 $42,000.0 2010 $58,800.00 $54,978.0 $1,029.0 $2,793.0 1,050.0 $1,743.0 $610.1 $1,133.0 l75.00 $509.83 6.25% 35% $77.69
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i. What is the firm's current ratio? a. 0.97 b. 1. 08 c. 1. 20 d. 1. 33 e. 1. 47 2. What is the firm's quick ratio? a. 0.49 b. 0.61 c. 0.73 d. 0.87 e. 1. 05 3. What is the firm's days sales outstanding? Assume a 360-day year for this calculation. a. 48.17 b. 50.71 c. 53.38 d. 56.19 e. 59.14 4. What is the firm's total assets turnover? a. 0.90 b. 1.12 c. 1. 40 d. 1. 68 e. 2.02 5. What is the firm's inventory turnover ratio? a. 4.38 b. 4.59 c. 4.82 d. 5.06 e. 5.32 6. What is the firm's TIE? a. 1. 94 b. 2.15 c. 2.39 d. 2.66 e. 2.93
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7. What is the firm's EBITDA coverage? a. 3.29 b. 3.46 c. 3.64 d. 3.82 e. 4.01 8. What is the firm's debt ratio? a. 45.93% b. 51. 03% c. 56.70% d. 63.00% e. 70.00% 9. What is the firm's ROA? a. 2.70% b. 2.97% c. 3.26% d. 3.59% e. 3.95% 10. What is the firm's ROE? a. 8.54% b. 8.99% c. 9.44% d. 9.91% e. 10.41% 11. What is the firm's BEP? a. 6.00% b. 6.32% c. 6.65% d. 6.98% e. 7.33%
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12. What is the firm's profit margin? a. 1. 40% b. 1.56% c. 1.73% d. 1. 93% e. 2.12% 13. What is the firm's dividends per share? a. $2.62 b. $2.91 c. $3.20 d. $3.53 e. $3.88 14. What is the firm's cash flow per share? a. $10.06 b. $10.59 c. $11. 15 d. $11. 74 e. $12.35 15. What is the firm's EPS? a. $5.84 b. $6.15 c. $6.47 d. $6.80 e. $7.14 16. What is the firm's PiE ratio? a. 12.0 b. 12.6 c. 13.2 d. 13.9 e. 14.6
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17. What is the firm's book value per share? a. $61. 73 b. $64.98 c. $68.40 d. $72.00 e. $75.60 18. Bosio Inc. 's perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? a. 8.72%
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This note was uploaded on 10/30/2010 for the course FIN Fin 520 taught by Professor You during the Spring '10 term at Robert Morris DUPLICATE.

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Fin 520 Mid-Term - N ame _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _...

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