1. Suppose a firm had $666766 million in earnings (net income after tax) for the prior twelve months. If the firm has 179040-million shares outstanding, what is the firm’s Earnings Per Share (EPS) based on prior twelve month earnings?
2. Suppose a firm had $1303100million in earnings (net income after tax) for the prior twelve months and has 169450-million shares outstanding. If the common stock of the firm sells for 22.5 times earnings per share (EPS) in the prior twelve months (i.e. price to earnings ratio is 22.5), what is the firm’s price per share of common stock?
3. Suppose a firm had $126-million in earnings (net income after tax) for the prior twelve months. If the firm has 39-million shares outstanding, what is the firm’s Earnings Per Share (EPS) based on prior twelve month earnings?
4. Suppose that a firm’s sales revenue was $630 last year. Calculate the annual sales expected in three years if sales revenue is expected to grow 2.9-percent annually.
5. Suppose that a firm’s sales revenue was $638 last year and is expected to grow 8.0-percent annually. Calculate the required inventories at the end of three years from today if inventories must be 2.8-percent of the following year’s sales.
6. Suppose that a firm’s sales revenue was $729 last year and is expected to grow 9.8-percent annually. Calculate the accounts receivables at the end of three years from today if accounts receivables is expected to be 15-percent of sales in the prior year.
7. You are given the following information:
Stockholders equity = $17.00 billion
Market price to earnings ratio = 10
Common shares outstanding = 0.76 billion
Market price to book ratio = 3.5
What is the market price of a share of the company’s common stock?
8. You are given the following information:
Stockholders equity = $8.55 billion
Market price to earnings ratio = 10
Common shares outstanding = 0.99 billion
Market price to book ratio = 3.6
What is the firm’s net income after tax (NI) divided by the number of common shares outstanding or the Earnings Per Share (EPS)?
9. You are given the following information:
Stockholders equity = $19.52 billion
Market price to earnings ratio = 10
Common shares outstanding = 0.83 billion
Market price to book ratio = 2.4
What is the firm’s net income after tax (NI) in units of billions of dollars?
10. You are given the following information:
Stockholders equity = $12.14 billion
Market price to earnings ratio = 30
Common shares outstanding = 1.12 billion
Market price to book ratio = 2.2
What is the firm’s Return on Equity (ROE)?