Determine the stock peg ratio

Assignment Help Accounting Basics
Reference no: EM133127880

Question - The Amherst Company has net profits of $10 million, sales of $150 million, and 2.5 million shares of common stock outstanding. The company has total assets of $75 million, and total shareholders' equity of $45 million. Dividend payout ratio is 25%, and the stock trades at $20 per share. Given this information, determine the following:

1. Amherst's price to book value ratio

2. The firm's P/E ratio

3. The company's net profit margin

4. The stock's dividend yield

5. The stock's PEG ratio, given that the company's earnings have been growing at an average annual rate of 7.5%

6. ROA return on assets and ROE return on equity

Reference no: EM133127880

Questions Cloud

Calculate the weighted average contribution margin per unit : Assume the sales mix remains the same at all levels of sales. Calculate the weighted average contribution margin per unit
How much lower would the annual cost be : If X purchases 1000 kg each time, how much lower would the annual cost be if X would now follow the EOQ model
What are the cash flows at the beginning : If you decide to implement the change (90% collected immediately), what are the cash flows at the beginning and end of first year
What is the amount of interest revenue : What is the amount of Interest Revenue that will be reported on Empire's income statement for the year ended December 31, 2021
Determine the stock peg ratio : Determine the stock's PEG ratio, given that the company's earnings have been growing at an average annual rate of 7.5%
Determine whether the depreciation of the machine will lead : The Machine was acquired on 1 July 2018 at the cost of $800,000. Determine whether the depreciation of the Machine will lead to a deferred tax asset
Provide the necessary journal entries that would be made : Provide the necessary journal entries that would be made in the books of XYZ Ltd to account for the above transaction for the year ending 30 June 2020
Calculate the amount to be withheld from employee payroll : Ontario taxes are $158.45. Received a family support court order for $4,500. Calculate the amount to be withheld from employee's payroll on this pay cycle
What is transaction that will be in the books of salacious : The related unamortized bond premium amounted to $1447. What is the transaction that will be in the books of Salacious Corporation

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the journal entries

Merando Company acquires 30 percent of Pau Company's common stock for $200,000 at the beginning of the year but does not gain significant influence over Pau.

  Is the fraud or abuse

Medicare claim because it has passed the timely filing limit and was not previously submitted for payment. Is this FRAUD or ABUSE? Why?

  What is the present value of the bond

Consider a one-year discount bond that pays P1,000 one year from now. If the rate of discount is 7%, what is the present value of the bond

  How much is the selling price per unit

Question - At the break-even point of 2,000 units, variable costs are $165,000, and fixed costs are $96,000. How much is the selling price per unit

  Calculate the net cash provided for garvey corporation

Calculate the net cash provided or used by financing activities for the Garvey Corporation using some or all of the following information

  During the year belyk paving co had sales of 2394000 cost

during the year belyk paving co. had sales of 2394000. cost of goods sold administrative and selling expenses and

  Why will increasing production near the end of the period

Why will increasing production near the end of the period increase profit? What should Aston's response and/or actions be to this request

  Explain the purpose of an income statement

In a two- to three-page paper (excluding the title and reference pages), explain the purpose of an income statement and how it reflects the firm's financial.

  The balance in prepaid insurance is a one-year premium paid

exercise 3-10 uhura resort opened for business on june 1 with eight air-conditioned units. its trial balance on august

  Estimated depreciation expense for an asset

A company receives a 10%, 90-day note for $1,500. The total interest due upon the maturity date is:

  Calculate the value of the trader margin account

Calculate the value of the trader's margin account after 6 days, if the futures price drops by $2 on the first day, then increases by $1.5 dollars

  For each of the itineraries calculate the present values of

national cruise line inc. is considering the acquisition of a new ship that will cost 200000000 in this regardnbspthe

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd