Calculate price to earnings ratio and market-to-book ratio
Course:- Financial Management
Reference No.:- EM13811288

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

Look up the 2013 annual financial statements for Johnson Controls Inc. (ticker: JCI) You can use finance.yahoo.com for this. Be sure to show how you arrived at your answers. Just writing the statistic down will not receive credit.

a. Calculate Return on Equity using the Du Point identity.

b. If JCI has 685 million shares outstanding at the end of 2013 and a market value of $24 billion. Calculate the price to earnings ratio, and market-to-book ratio. If all of the net income is paid out as dividends, what are the dividends per share?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Dick Tracy builds a two way wrist radio for $8,000. It costs Dick $1800 a year to operate the radio. Dick uses the wrist radio for 5 years before upgrading the electronics for
Consider a firm in an industry in which technology improvements are constantly lowering its cost of physical capacity. On average, the cost to acquire a unit of physical capac
A stock price is currently $100. Over each of the next two six-month periods it is expected to go up by 10% or down by 9%. The risk-free interest rate is 5%. What is the risk-
The economy is slowing down, not growing and unemployment is going up. If you are on the Federal Reserve Board of Governors what type of policy would you pursue? Please be spe
Weir Inc. has a bond in its capital structure that has 20 years to maturity left. The bond has a 9.00% coupon paid annually, and has a par value of $1,000. If investors want t
You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to inc
What is examples free cash flow and how can a company can use its free cash flow? Does a company have to pay off its fixed assets and capital expenditures first to recognize o
When the assumptions of Modigliani and Miller’s Irrelevance Hypothesis regarding corporate capital structure are relaxed so that they are more consistent with real-world condi