XYZ’s balance sheet and income statement are given below:
Balance Sheet
Cash
150
Accounts payable
160
A/R
150
Notes payable
-
Inventories
250
Long-term debt (10%)
800
Fixed assets
650
Common equity (24 shares)
240
Total assets
1,200
Total liabilities and equity
1,200
Income Statement
Sales
1,200
Cost of goods sold
900
EBIT
300
Interest
80
EBT
220
Taxes (40%)
88
Net income
132
The industry average inventory turnover is 4, the interest rate on the firm’s long-term debt is 10 percent, 24 shares are outstanding, and the stock sells at a P/E of 6.0. If XYZ changed its inventory methods so as to operate at the industry average inventory turnover, if it used the funds generated by this change to buy/sell back common stock at the current market price and thus to reduce/increase common equity, and if sales, the cost of goods sold, and the P/E ratio remained constant, by what dollar amount would its stock price increase/decrease?
Answers
Answered by
0
Explanation:
gffttttotns badhra questio.n
Answered by
0
Answer:
hi there in the world 3of I 3need 3my 3in and comment on the highest place in kalahari map and comment on the world of God 3PM 3in the world of the world of the earth survive 3in and 3I in india and the world of the earth and the earth is the same as discussed in the bible and the bible is not coming from the bible but
Similar questions