chapter_09 - Chapter 9 For the Investor TO THE NET 1....

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Unformatted text preview: Chapter 9 For the Investor TO THE NET 1. Wendys 2001 2000 1999 a. Earnings per common share Basic earnings per common share Diluted earnings per common share $1.72 $1.65 $1.48 $1.44 $1.37 $1.32 b. Price/earnings ratio P/E $29.1 7 $ 1.65 17.68 $26.25 $ 1.44 18.23 $20.81 $ 1.32 15.22 c. Percentage of earnings retained 2001 % 15 . 86 000 , 649 , 193 $ 000 , 825 , 166 $ 000 , 649 , 193 $ 000 , 824 , 26 $ 000 , 649 , 193 $ = =- 2000 % 78 . 83 000 , 648 , 169 $ 000 , 133 , 142 $ 000 , 648 , 169 $ 000 , 516 , 27 $ 000 , 648 , 169 $ = =- 1999 % 41 . 82 000 , 585 , 166 $ 000 , 280 , 137 $ 000 , 585 , 166 $ 000 , 305 , 29 $ 000 , 585 , 166 $ = =- d. Dividend payout 2001 % 55 . 14 65 . 1 $ 24 $. = 2000 % 67 . 16 44 . 1 $ 24 $. = 1999 % 18 . 18 32 . 1 $ 24 $. = e. Dividend yield 2001 % 82 . 17 . 29 $ 24 $. = 2000 % 91 . 25 . 26 $ 24 $. = 1999 % 15 . 1 81 . 20 $ 24 $. = 234 235 2. Motorola, Inc. December 31 2001 2000 1999 Reorganization of business Other Charges Gains on sales of investments and businesses $1,858,000,000 Loss $3,328,000,000 Loss $1,931,000,000 Gain $596,000,000 Loss $517,000,000 Loss $1,570,000,000 Gain $226,000,000 Gain $1,406,000,000 Loss $1,180,000,000 Gain These line items make it difficult to form an opinion on the results of Motorola, Inc. 3. Boeing Co. December 31 2001 2000 1999 a. Earnings per common share Basic earnings per share Diluted earnings per share $3.46 $3.41 $2.48 $2.44 $2.52 $2.49 b. Price/earnings ratio P/E $38.78 $ 3.41 11.47 $66.00 $ 2.44 27.05 $41.44 $ 2.49 16.64 c. Percentage of earnings retained 2001 2000 1999 $2,826,000,000- 582,000,000 $2,826,000,000 = 79.41% $2,128,000,000- 504,000,000 $2,128,000,000 = 76.32% $2,309,000,000- 537,000,000 $2,309,000,000 = 76.74% d. Dividend payout 2001 2000 1999 % 94 . 19 41 . 3 $ 68 $. = % 95 . 22 44 . 2 $ 56 $. = % 49 . 22 49 . 2 $ 56 $. = e. Dividend yield 2001 2000 1999 236 % 75 . 1 78 . 38 $ 68 $. = % 85 . 00 . 66 $ 56 $. = % 35 . 1 84 . 41 $ 56 $. = 4. Microsoft Year Ended June 30, 2001 June 30, 2002 a. Total assets b. Shareholders equity c. Common stock shares issued and outstanding $ 58,830,000,000 $ 47,289,000,000 5,383,000,000 $ 67,646,000,000 $ 52,180,000,000 5,359,000,000 d. Market price x common shares issued and outstanding June 30, 2001 ($73.00) (5,383,000,000) = June 30, 2002 ($54.70) (5,359,000,000) = $392,959,000,000 $293,137,300,000 e. Total capitalization is represented by market price x common shares issued and outstanding. This represents the projected cash flow from this firm discounted at an interest rate. Investors constantly change their opinion of the projected cash flow and the discount rate to use. Shareholders equity is an amount on the balance sheet that represents shareholders interest. It is an accounting book number arrived at by following generally accepted accounting principles....
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This note was uploaded on 07/12/2011 for the course FINANCE 7015 taught by Professor Elmo during the Spring '11 term at North Central Technical College.

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chapter_09 - Chapter 9 For the Investor TO THE NET 1....

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