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##### When calculating earnings per share and PE ratios...

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When calculating earnings per share and PE ratios, please show your work. 1. You manufacture hunting pack systems in China for 80 dollars each, including shipping. The manufacturing costs only include variable costs. Variable costs are not calculated as a percentage of sales in this case. Sales are a function of the number of packs sold and the price per pack. Likewise, variable costs are a function of the number of packs sold and the cost to produce each pack. You sell these packs to retailers for 200 dollars each. In the current year you will sell 100,000 packs. Your fixed costs including such items as insurance, marketing, travel, shows, office supplies, warehouse rentals etc. totals 5 million dollars this year and are not part of the 80 dollars per pack manufacturing cost. The federal income tax rate for your company is 40 percent. Your company is publicly traded on the NASDAQ with 1,000,000 shares outstanding. a. Please create a current income statement using the same format as found in the lecture. (25 points) b. Please calculate earnings per share. (5 points) c. Please calculate the price/earnings multiple assuming that the current stock price is 10 dollars per share. (5 points) 2. Create a two-year forecast of the income statement from the information provided in problem number one. Please create three columns of data: current year, year 2, and year 3. Assume that sales increase ten percent per year for year?s two and three. Please show the earnings per share for each of the three years. (25 points) 3. Please estimate the stock price for year?s two and three, assuming that the current PE multiple remains constant for each of the two forecasted years. (15 points),I could only chouse $25 or $30 in the fields. I am willing to give a $5 tip to reach the $35 you are asking if I can get the answers by the date specified. I have some outstanding issues witht he service so far. I posted this question now three times. Each with a $20, $25 and $30 deposit. That is 475 tied up in credit. I am waiting to be refunded my $45. Hopefully you will see this and, and we can move forward. Not sure why the system is giving me such a hard time this go around, by I will appreciate any assistance you can provide. I attached the lecture to give you an idea of how the questions should be answered. Here are the questions: When calculating earnings per share and PE ratios, please show your work. 1. You manufacture hunting pack systems in China for 80 dollars each, including shipping. The manufacturing costs only include variable costs. Variable costs are not calculated as a percentage of sales in this case. Sales are a function of the number of packs sold and the price per pack. Likewise, variable costs are a function of the number of packs sold and the cost to produce each pack. You sell these packs to retailers for 200 dollars each. In the current year you will sell 100,000 packs. Your fixed costs including such items as insurance, marketing, travel, shows, office supplies, warehouse rentals etc. totals 5 million dollars this year and are not part of the 80 dollars per pack manufacturing cost. The federal income tax rate for your company is 40 percent. Your company is publicly traded on the NASDAQ with 1,000,000 shares outstanding. a. Please create a current income statement using the same format as found in the lecture. (25 points) b. Please calculate earnings per share. (5 points) c. Please calculate the price/earnings multiple assuming that the current stock price is 10 dollars per share. (5 points) 2. Create a two-year forecast of the income statement from the information provided in problem number one. Please create three columns of data: current year, year 2, and year 3. Assume that sales increase ten percent per year for year?s two and three. Please show the earnings per share for each of the three years. (25 points) 3. Please estimate the stock price for year?s two and three, assuming that the current PE multiple remains constant for each of the two forecasted years. (15 points),Hi- Are you getting my messages? In the past, as soon as I submitted something it would immediately post. Right now there seems to be a delay. Please let me know if you received a message I sent in the 9:50 am range CST. Once I know you are actually reading my messages, I will feel better :)

Paper#10102 | Written in 18-Jul-2015

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