What is the price-sales ratio if the stock has a book value

Assignment Help Financial Management

Reference no: EM131337993

1. Blasco International has sales of $389,700 and net earnings income of 144,000. The company has 120,000 shares outstanding. What is the price-sales ratio if the stock has a book value of $19.20 per share and a market value per share of $8.60? If the appropriate P/E ratio for the firm is 11.7, what should the price per share be?

2. Hodgkiss Enterprises has gathered projected cash flows for two projects. At what interest rate would the company be indifferent between the two projects? Which project is better if the required return is 10.5 percent?

Year Project I Project J

0 -$172,000 -$172,000

1 83,2000 60,000

2 74,400 68,800

3 63,200 76,800

4 57,800 84,000

Reference no: EM131337993

Questions Cloud

Machine including all costs initial-operating : The company is choosing between machine A and B (they are mutually exclusive and the company can only pick one). The initial cost of machine A is $500,000 and it will last for 7 years before it needs to be replaced. Calculate the 7 year and 5 year a..

The expected dividends of the stocks : Suppose that in 2012 the expected dividends of the stocks in a. Road market index equaled $240 million when the discount rate was 8% and the expected growth rate of the dividends equaled 6%. Using the constant-growth formula valuation, if interest ra..

What is the payback period for the project : Suppose Palmer Properties is considering investing $3.6 million today (i.e., C0 = -3,600,000) on a new project that is expected to last for 8 years. What is the payback period for the project? What is the internal rate of return on the project ?

Calculate the actual sales made locally : As indicated in the video, nearly $1 billion was invested in the development of the Meadow Lake Wind Farm. Assuming 25% of those dollars were spent locally and subject to Indiana’s sales tax, calculate the actual sales made locally.

What is the price-sales ratio if the stock has a book value : Blasco International has sales of $389,700 and net earnings income of 144,000. The company has 120,000 shares outstanding. What is the price-sales ratio if the stock has a book value of $19.20 per share and a market value per share of $8.60? If the a..

Earnings in the form of dividends : BB has an expected ROE of 25%. Its dividend growth rate will be ____ if it follows a policy of paying 30% of earnings in the form of dividends. (Please show all relevant HP12C calculations)

Create portfolio equally as risky as the market : You want to create a portfolio equally as risky as the market, and you have $1,900,000 to invest.

Calculate best-case and worst-case npv figures : We are evaluating a project that costs $1,675,000, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 91,000 units per year. Price per unit is $35.95, ..

Preferred stock-what is your total return for last year : You bought a share of 6.40 percent preferred stock for $96.68 last year. The market price for your stock is now $100.92. What is your total return for last year?

User Account

All Pages