question 49
Multiple Choice
pettijohn Inc.
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm hasno amortization charges, it does not lease any ass ets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Balance Shet (Millions of $ )
Assets Cash and securities Accounts receivable inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Cong-term bonds Cotal liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depr’n Depreciation Earnings bef int and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Dther data: Shares outstanding (millions) Common dividends Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2016$1,554.009,660.0013,440.00$24,654.0017,346.00$42,000.00$7,980.005,880.004,620.00$18,480.0010,920.00$29,400.003,360.009,240.00$12,600.00$42,000.002016$58,800.00$55,274.00$1,029.00$2,497.001,050.00$1,447.00$314.00$1,133.00175.00509.836.25%21.7%$77.69
-Refer to the data for Pettijohn Inc.What is the firm's ROE?
Definitions:
U.S. Justice Department
The U.S. Justice Department, also known as the Department of Justice, is a federal executive department responsible for enforcing the law and administering justice in the United States.
Legal Suits
Legal actions taken by one party against another in a court of law, seeking remedies such as damages or specific performance.
Resale Price Maintenance
A practice where manufacturers set a minimum price below which retailers are not allowed to sell their product, aiming to stabilize market prices and maintain brand image.
Cooperative Outcome
A result in decision-making where all parties work together to achieve a mutually beneficial solution, often in contrast to competitive or adversarial outcomes.