Calculate the pe ratio for caring labs

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Reference no: EM133180208

Question - Solve the following scenarios based on what you have learned in financial statement analysis:

a) Garage Holdings is a well-known and reputable supplier of auto parts. The firm has current liabilities of RM25 million. Cash makes up 20 percent of the current assets and accounts receivable makes up another 35 percent of current assets. The firm's current ratio = 3.5 times. Calculate the value of inventory listed on the firm's balance sheet.

b) Syawal Sdn. Bhd. has assets of RM1,800,000 and turns over its assets 2.5 times per year. Return on assets is 20 percent. Find the net profit margin for the company.

c) Perwira Steel Incorporation has RM200,000 in inventory, which represents 20 percent of its current assets. Current assets represent 50 percent of its total assets. Total debt on the other hand, represents 30 percent of total assets. What is the company's stockholders' equity?

d) Caring Labs' year-end price on its common stock is RM15. The firm has a profit margin of 8%, total assets of RM25 million, a total asset turnover ratio of 0.75, no preferred stock, and there are 3 million shares of common stock outstanding. Calculate the PE ratio for Caring Labs.

Reference no: EM133180208

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