If inventory increases by $ 100,000 , what will be the impact on the current ratio , the quick ratio , and the net-working-capital-to-total-assets ratio ? Show the ratios before and after the changes .
9 . Given the following financial data , compute :
10 . Assume the following financial data : Shares outstanding ............................................................................ 24,000 a . Compute the P / E ratio ( stock price to earnings per share ).
b . Compute the book value per share ( note that book value equals stockholders ’ equity ).
c . Compute the ratio of stock price to book value per share . d . Compute the dividend yield . e . Compute the payout ratio .
11 . Security Analyst A thinks the Collins Corporation is worth 14 times current earnings . Security Analyst B has a different approach . He assumes that 45 percent of earnings ( per share ) will be paid out in dividends and the stock should provide a 4 percent current dividend yield . Assume total earnings are $ 12 million and that 5 million shares are outstanding .
a . Compute the value of the stock based on Security Analyst A ’ s approach . b . Compute the value of the stock based on Security Analyst B ’ s approach .