Saudi stock exchange-tadawul

Assignment Help Finance Basics
Reference no: EM132495028

Each student is assigned a company listed in the Saudi Stock Exchange - Tadawul (Alrajhi Bank). Your job is to calculate the following ratios based on what you have learned in class. You will accomplish this by using data from your company's financial statements either from www.tadawul.com or from the company's main website for year 2019. For each ratio, you will have to answer questions associated with these ratios:

1. What is the Price to Earning (P/E) Ratio? If you know that the average banking industry P/E ratio for 2019 was 14.83, how do you feel about the stock as a financial analyst? Is it risky or not? Justify your answer.

2. What is the book value per share? If you compare the book value per share to the most recent market price (recent closing price), are you more or less confident in the stock? Would you buy the stock? Why or why not?

3. What is the stock's earning per share (EPS) ratio? If you know that the average banking industry EPS for 2019 was 2.44, how do you feel about the stock as a financial analyst?

4. Calculate the following ratios: current ratio, profit margin, operating margin, and ROA.

Reference no: EM132495028

Questions Cloud

What is the stock intrinsic value-grace corporation : Grace Corporation common stock has a par value of $25 and recentlyn paid a dividend of $3.16 per share. The firm's dividends have grown from $1.50 to $3.16
Determining required rate of return-superior company : Superior Company common stock is currently selling for $60 per share. The stock will pay a dividend of $2.25 next year. If you buy the stock now
What is cost of equity raised by selling new common stock : Flotation costs amount to 5.00% of the selling price. What is the cost of equity raised by selling new common stock?
Constant growth dividend model : The last dividend of Delta, Inc. was $12.77, the growth rate of dividends is expected to be 2.68 percent, and the required rate of return on this stock is 9.38
Saudi stock exchange-tadawul : Each student is assigned a company listed in the Saudi Stock Exchange - Tadawul (Alrajhi Bank). Your job is to calculate the following ratios
How much of an rrsp contribution : Aya Ueto's earnings for last year were $242,000. How much of an RRSP contribution can she make this year (if she has no other RRSP room)? Show your calculations
What is the firm cost of capital : The firm's cost of equity is 14%, cost of preferred is 9%, and the pre-tax cost of debt is 6%. If the corporate tax rate is 21%, what is the firm's cost of capi
Company cost of preferred stock financing : If new shares are issued, the firm will pay $2 per share in flotation costs. The corporate tax rate is 21%. What is the company's cost of preferred stock financ
Bonds sold for par value : The bonds sold for par value, but flotation costs amounted to 3% of the price. You have a 21% corporate tax rate. What is your firm's cost of debt?

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain affect the capital budgeting decisions

Briefly explain how the following items affect the capital budgeting decisions of multinational companies: (a) Exchange rate risk; (b) Political risk; (c) Tax law differences; (d) Transfer pricing; and (e) A strategic, rather than a strict, financial..

  What is the adjusted basis of the stock and rights

Bruce receives 20 stock rights in a nontaxable distribution. The stock rights have a FMV of $5,000. The 100 shares of common stock with respect.

  What respect is a perpetual bond similar to a no-growth

A bond that pays interest forever and has no maturity date is a perpetual bond. In what respect is a perpetual bond similar to a no-growth common stock, and to a share of preferred stock?

  Calculate the value of a bws put option if its exercise

The BWS Corporation stock is selling at $50 a share today. a. Calculate the value of a BWS put option if its exercise price is $40 and it expires today. b. What can you say about the value of a BWS put option if its exercise price is $40 and it expir..

  Interest rates in financial markets

How does the time value of money affect interest rates in financial markets?

  What would be the after-tax amount

Assume that Jane Adams pays income taxes at a 35 percent rate. What would be the after-tax amount on $100 of interest income that she receives?

  Price corp is considering selling to a group of new

price corp. is considering selling to a group of new customers and creating new annual sales of 320000. 3 will be

  Calculate the value of perpetuity

Calculate the value of perpetuity and With Same amount of money what rate compounded semi-annually equate when the same amount compound at quarterly rate of 5.5%

  What is cordell wacc

The firm's capital structure consists of 55% debt and 45% equity. What is Cordell's WACC?

  What is the incremental costs associated with producing

Suppose this action will increase sales to 300,000 jars of sauce. What is the incremental costs associated with producing an extra 72,500 jars of sauce?

  After-tax cost of debt on the? bond

The company is in the 18 percent marginal tax bracket. What is the? firm's after-tax cost of debt on the? bond?

  Calculate topanga cost of goods

1. Calculate Topanga's cost of goods sold for the first quarter using:

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