Use the following to answer questions 26 through 30: Shamrock Inc. has total assets of $16...

Use the following to answer questions 26 through 30:

Shamrock Inc. has total assets of $16 million including cash and marketable securities of $3 million, debt of $2 million, book value of equity of $11 million and market value of equity of $33 million. Last year EBITDA was $4 million and net earnings were $2.2 million.

______26) Total liabilities equal _________.

A. $2.0 million B. $5.0 million C. $7.0 million D. Some other amount

______27) What is the enterprise value of the company?

A. $32.0 million B. $33.0 million C. $34.0 million D. Some other amount

______28) The price to earnings ratio is closest to:

A. 5 times B. 8 times C. 8.25 times D. 15 times

Expert Solution

	Given,
	Total assets	$16 millions	(out of which $3 millions is cash and marketable securities)
	Debt	$2 millions
	Book value of equity	$11 millions
	Market value of equity	$33 millions
	EBITDA	$4 millions
	Net earnings	$2.2 millions

26)	Total liabilities= Total assets-Book value of equity
		$(16-11) millions
		$ 5 millions

	Answer: Option B

27)	Enterprise value of the company= Market value of equity+Value of debt-Cash and marketable securities
		$(33+2-3) millions
		$ 32 millions

	Answer: Option A

28)	Price Earnings ratio= Market capitalisation/Total net earnings
		$33 millions/2.2 millions
		15 times

	Answer: Option D

jeff jeffy answered 1 year ago

Use the following information to answer questions 26 to 29. In October 1998, 30% of employed...

Use the following information to answer questions 26 to 29. In October 1998, 30% of employed adults were satisfied with their chances for promotion. A human resource manager wants to determine if this percentage has changed significantly since then. She randomly selects 280 employed adults and find that 112 of them are completely satisfied with their chances for promotion. Is there sufficient evidence to conclude that the percentage of employed adults satisfied with their chances for promotion is significantly different...

Use the table to answer the following questions Output Total Revenue Total Cost 0 0 30...

Use the table to answer the following questions Output Total Revenue Total Cost 0 0 30 1 40 55 2 80 98 3 120 125 4 160 152 5 200 180 a) What is the price of the product? b) What is the marginal revenue from the fourth unit output? c) What is the profit, when firm produce 5 units?

Use the following to answer questions 16-18: Cumulus, Inc. began the period with 1,000,000 shares of...

Use the following to answer questions 16-18: Cumulus, Inc. began the period with 1,000,000 shares of stock outstanding. By the end of the period, they had managed to sell an additional 300,000 shares. Preferred stock made up 20% of the number of shares outstanding at the beginning of the period and 50% of the shares sold during the period. Each share of preferred stock sells for $20 and must be paid a 7% dividend on that sales price each year,...

Use the following table to answer questions a through d. Labor Input Total Product Marginal Product...

Use the following table to answer questions a through d. Labor Input Total Product Marginal Product Average Product 0 0 --- --- 1 A 70 B 2 135 C D 3 E F 63 4 G 51 H 5 I J 57 6 324 K L a. What is the value of A in the table? b. What is the value of C in the table? c. What is the value of B in the table? d. What is the...

26: Answer the following questions regarding Bankruptcy A)Lapin Corp. owned the following assets when it came...

26: Answer the following questions regarding Bankruptcy A)Lapin Corp. owned the following assets when it came out of a Chapter 11 bankruptcy: Inventory $ 220,000 $ 175,000 Land 95,000 170,000 Buildings 250,000 400,000 Equipment 420,000 310,000 Lapin Corp. had a fresh start reorganization value of $1,200,000. What amount of goodwill should have been recognized in recording the reorganization? A) 70,000 B) 145,000 C) 20,000 D) 215,000 E) 90,000 B) Land with a net realizable value of $150,000 is used as...

Use the following data to answer Questions 25 and 26: A general reaction written as A...

Use the following data to answer Questions 25 and 26: A general reaction written as A + 2B → C + 2D is studied and yields the following data: [A]0 [B]0 Initial Δ[C]/Δt 0.150 M 0.150 M 8.00 × 10–3 mol/L·s 0.150 M 0.300 M 1.60 × 10–2 mol/L·s 0.300 M 0.150 M 3.20 × 10–2 mol/L·s 25. What is the numerical value of the rate constant?

Use the following data to answer Questions 25 and 26: A general reaction written as...

Use the following data to answer Questions 25 and 26: A general reaction written as A + 2B ® C + 2D is studied and yields the following data: [A]0 [B]0 Initial D[C]/Dt 0.150 M 0.150 M 8.00 ´ 10–3 mol/L·s 0.150 M 0.300 M 1.60 ´ 10–2 mol/L·s 0.300 M 0.150 M 3.20 ´ 10–2 mol/L·s 25. What is the numerical value of the rate constant? 26. Determine the initial rate of B consumption (D[B]/Dt) for the first...

Use the following information to answer questions (problems) 16 - 18. The following data are the...

Use the following information to answer questions (problems) 16 - 18. The following data are the result of inspecting aircraft seat belt buckles produced in various lot sizes. Number of buckles in each sample Number of defective buckles found 100 15 110 7 95 18 90 8 150 10 85 14 50 9 115 20 110 6 95 12 A- WORTH 4 POINTS: What is the average percent defective? Show work & formulae used or just use Minitab and attach/embed....

Use the following to answer questions 23 - 26 BRT Corporation was organized on January 3,...

Use the following to answer questions 23 - 26 BRT Corporation was organized on January 3, 20XE. The firm was authorized to issue 100,000,000 shares of $0.10 par common stock. During 20XE, BRT had the following transactions relating to shareholders' equity: Per share Shares Total Issued common stock (January) $10.00 300,000 Issued common stock (July) $14.00 200,000 Outstanding shares 484,300 Dividends declared $0.30 Treasury stock $13.50 Net income for the year $753,200 23. $__________________What is the additional paid-in capital at...

Use the information below for ABC Co. to answer the following questions (#15 – 26). Balance...

Use the information below for ABC Co. to answer the following questions (#15 – 26). Balance Sheet December 31 2005 2004 Assets Cash $ 20,000 $ 10,000 Accounts receivable 160,000 110,000 Inventories 80,000 50,000 Prepaid Rent 15,000 10,000 Investments 100,000 75,000 Plant assets 210,000 250,000 Accumulated depreciation (65,000) (60,000) Total $520,000 $445,000 Liabilities and Stockholders' Equity Accounts payable $ 50,000 $ 40,000 Interest payable 20,000 5,000 Income tax payable 5,000 10,000 Note payable 130,000 140,000 Common stock 155,000 100,000 Retained earnings 160,000 150,000 Total $520,000 $445,000 Income Statement For the Year Ended December 31, 2005 Sales $800,000 Cost of goods sold 480,000 Gross Profit 320,000 Operating expenses (including Depreciation Expense) 120,000 Interest expense 20,000 Income tax expense 25,000 Total 165,000 Income before Gains...

Question