Compute the firm price-earnings ratio and the price-ebitda

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Question 1: Cisco Systems has total assets of $35.594 billion, total debt of $9.678 billion, and net sales of $22.045 billion. Its net profit margin for the year is 20 percent, while the operating profit margin is 30 percent. What are Cisco's net income, EBIT ROA, ROA, and ROE?

Profitability ratios:

EBIT ROA= 18.6%

Net Income= $4.409 Billion

ROA= 12.4%

ROE= 17%

Question 2: Use the information for Cisco Systems. In addition, the company's EBITDA was $6.834 billion and its share price was $22.36. Compute the firm's price-earnings ratio and the price-EBITDA ratio.

Reference no: EM132826632

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