Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Question
Chapter 10, Problem 94.5C
To determine
Introduction:
Earning per share is a ratio used by the investors to evaluate the return on their shares. It is one of the significant ways to increase the value of the company.
To calculate:
The earning per share ratio for both the companies.
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dentifying Comparables and Valuation using PB and PE
Tailored Brands Inc.’s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD and a peer group of companies (identified by ticker symbol) from the specialty retail sector.
Ticker
Market
Cap($ mil.)
PB
Current
Forward
PE (FY1)
EPS 5-Year
Historical
Growth Rate
ROE
(T 4Q)
Debt-to-
Equity
(Prior Year)
TLRD
--
--
--
-0.47%
22.50%
2.53
GCO
585.7
1
9.699
-323.73%
-5.86%
0.13
ZUMZ
789.7
1.95
14.17
3.28%
13.85%
0
GES
1,147.00
2.07
13.19
-37.69%
1.90%
0.56
ANF
988.2
1
19.69
9.37%
6.35%
0.25
TLYS
293.7
1.68
11.6
5.51%
13.93%
0
M
4,760.00
0.75
5.458
-1.74%
16.70%
0.74
(a) Identify a set of three companies from this list to use as comparables for estimating the equity intrinsic value of…
Justice
Corporation reported the following financial statements:
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(Click
the icon to view the financial statements.)
The company has
2,900
shares of common stock outstanding and the market price is
$25
per share. What is
Justice's
price/earnings ratio? (Round any intermeidary calculations and your final answer to two decimal places, X.XX.)
A.
0.09
B.
8.80
C.
8.80
times
D.
$0.09
Click to select your answer.
Financial Statements
Justice Corporation
Comparative Balance Sheet
December 31, 2025 and 2024
2025
2024
Assets
Current Assets:
Cash and Cash Equivalents
$2,150
$1,724
Accounts Receivable
1,966
1,772
Merchandise Inventory
1,348
1,104
Prepaid Expenses
1,638
2,055
Total Current Assets
7,102
6,655
Other Assets
17,335
16,268
Total Assets
$24,437
$22,923
Liabilities
Current Liabilities
$7,383…
Identifying Comparables and Valuation using PB and PE
Tailored Brands Inc.'s book value of equity is $4.563 million and its forward earnings estimate per share is $1.10, or $55.7 million in total earnings. The following information is also available for TLRD
and a peer group of companies (identified by ticker symbol) from the specialty retail sector.
Market
Ticker Cap($ mil.)
TLRD
GCO
ZUMZ
GES
ANF
TLYS
M
585.7
789.7
1,147,0
988.2
293.7
4,760.0
PB Forward
Current PE (FY1)
1.00 9.699
1.95 14.17
2.07
13.19
1.00 19.69
1.68 11.6
0.75 5.458
EPS 5-Year
Historical ROE
Growth Rate (T 4Q)
(0.47% 22.50%
(323.73) (5.86 ) %
3.28% 13.85%
(37.69% 1.90%
9.37% 6.35%
5.51% 13,93%
(1.74 % 16.70%
Debt-to-
Equity
(Prior Year)
2.53
0.13
0.00
0.56
0.25
0.00
0.74
(a) Identify a set of three companies from this list to use as comparables for estimating the equity intrinsic value of TLRD using the market multiples approach.
ZUMZ, TLYS, M +
(b) Assume that you use as comparables the following set of companies:…
Chapter 10 Solutions
Cornerstones of Financial Accounting
Ch. 10 - Prob. 1DQCh. 10 - 2. What does a share of stock represent?Ch. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - 11. Describe how cumulative preferred stock...Ch. 10 - Prob. 12DQCh. 10 - 13. What balance sheet accounts are affected by...Ch. 10 - 14. What is the difference between par value and...Ch. 10 - Prob. 15DQCh. 10 - Prob. 16DQCh. 10 - Prob. 17DQCh. 10 - Prob. 18DQCh. 10 - Prob. 19DQCh. 10 - Prob. 20DQCh. 10 - Prob. 21DQCh. 10 - Prob. 22DQCh. 10 - Prob. 23DQCh. 10 - Prob. 24DQCh. 10 - Prob. 25DQCh. 10 - Prob. 26DQCh. 10 - Prob. 27DQCh. 10 - Prob. 28DQCh. 10 - Prob. 29DQCh. 10 - Prob. 30DQCh. 10 - Prob. 31DQCh. 10 - Prob. 32DQCh. 10 - Prob. 33DQCh. 10 - Prob. 34DQCh. 10 - Which of the following is not a component of...Ch. 10 - Which of the following statements is true? The...Ch. 10 - Authorized stock represents the: number of shares...Ch. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Ames Corporation repurchases 10,000 shares of its...Ch. 10 - With regard to preferred stock, its stockholders...Ch. 10 - Prob. 8MCQCh. 10 - Prob. 9MCQCh. 10 - A company would repurchase its own stock for all...Ch. 10 - Prob. 11MCQCh. 10 - Prob. 12MCQCh. 10 - Prob. 13MCQCh. 10 - Prob. 14MCQCh. 10 - When a company declares a cash dividend, which of...Ch. 10 - Prob. 16MCQCh. 10 - Prob. 17MCQCh. 10 - The balance of the $2.50 par value Common Stock...Ch. 10 - When a company declares a 3-for-l stock split, the...Ch. 10 - Shea Company has 100,000 shares of 6%, S50 par...Ch. 10 - RVR Enterprises shows net income of $1 00,000 for...Ch. 10 - Comprehensive income: includes transactions that...Ch. 10 - Prob. 23MCQCh. 10 - Prob. 24MCQCh. 10 - Prob. 25CECh. 10 - Recording the Sale of Common Stock Plymouth...Ch. 10 - Calculating the Number of Shares Issued Castalia...Ch. 10 - Prob. 28CECh. 10 - Prob. 29CECh. 10 - Prob. 30CECh. 10 - Prob. 31CECh. 10 - Cash Dividends King Tut Corporation issued 19,000...Ch. 10 - Prob. 33CECh. 10 - Prob. 34CECh. 10 - Preferred and Common Stock Dividends Barstow...Ch. 10 - Preferred Stock Dividends Seashell Corporation has...Ch. 10 - Stockholder Profitability Ratios The following...Ch. 10 - Stockholder Payout Ratios The following...Ch. 10 - Prob. 39BECh. 10 - Recording the Sale of Common and Preferred Stock...Ch. 10 - Prob. 41BECh. 10 - Calculating the Number of Shares Issued Castanet...Ch. 10 - Prob. 43BECh. 10 - Accounting for Treasury Stock Paris Corporation...Ch. 10 - Treasury Stock Refer to the information for...Ch. 10 - Prob. 46BECh. 10 - Cash Dividends Cyprus Corporation issued 12,000...Ch. 10 - Prob. 48BECh. 10 - Augusta Corporation reported the following...Ch. 10 - Preferred and Common Stock Dividends Brookshed...Ch. 10 - Prob. 51BECh. 10 - Prob. 52BECh. 10 - Prob. 53BECh. 10 - Stockholder Payout Rations Super Duper Corporation...Ch. 10 - Prob. 55BECh. 10 - Prob. 56ECh. 10 - Outstanding Stock Lars Corporation shows the...Ch. 10 - Capital Stock Refer to the information for Stahl...Ch. 10 - Preparation of Stockholders Equity Section Refer...Ch. 10 - Issuing Common Stock Carmean Products Inc. sold...Ch. 10 - Issuing and Repurchasing Stock Mohawk Company had...Ch. 10 - Prepare the Stockholders' Equity Section Renee...Ch. 10 - Prepare the Stockholders' Equity Section Wildcat...Ch. 10 - Prob. 64ECh. 10 - Treasury Stock Transactions Garrett Inc. had no...Ch. 10 - Cash Dividends on Common Stock Berkwild Company is...Ch. 10 - Cash Dividends on Common and Preferred Stock Lemon...Ch. 10 - Prob. 68ECh. 10 -
Stock Dividends
Crystal Corporation has the...Ch. 10 - Stock Dividend The balance sheet of Cohen...Ch. 10 - Prob. 71ECh. 10 - Stock Dividends and Stock Splits The balance sheet...Ch. 10 - Preferred Dividends Eastern Inc.s equity includes...Ch. 10 - Cumulative Preferred Dividends Capital stock of...Ch. 10 - Retained Earnings Tigress Manufacturing had...Ch. 10 - Prob. 76ECh. 10 - Prob. 77ECh. 10 - Ratio Analysis Consider the following information....Ch. 10 - Ratio Analysis MJO Inc. has the following...Ch. 10 - Stockholders' Equity Terminology A list of terms...Ch. 10 - Prob. 81PSACh. 10 - Prob. 82PSACh. 10 - Treasury Stock Transactions Hansen Inc. engaged in...Ch. 10 - Statement of Stockholders' Equity At the end of...Ch. 10 - Common Dividends Fusion Payroll Service began 2019...Ch. 10 - Problem 10-86A Stock Dividends and Stock Splits...Ch. 10 - Prob. 87PSACh. 10 - Ratio Analysis Consider the following information...Ch. 10 - Prob. 81PSBCh. 10 - Prob. 82PSBCh. 10 - Treasury Stock Transactions Bentonite Adhesives...Ch. 10 - Statement of Stockholders' Equity At the end of...Ch. 10 - Common Dividends Thompson Payroll Service began in...Ch. 10 - Prob. 86PSBCh. 10 - Prob. 87PSBCh. 10 - Prob. 88PSBCh. 10 - Prob. 89.1CCh. 10 - Prob. 89.2CCh. 10 - Prob. 90.1CCh. 10 - Prob. 90.2CCh. 10 - Prob. 91CCh. 10 - Prob. 92.1CCh. 10 - Prob. 92.2CCh. 10 - Prob. 92.3CCh. 10 - Prob. 92.4CCh. 10 - Prob. 92.5CCh. 10 - Prob. 93.1CCh. 10 - Prob. 93.2CCh. 10 - Prob. 93.3CCh. 10 - Prob. 93.4CCh. 10 - Prob. 93.5CCh. 10 - Prob. 93.6CCh. 10 - Prob. 94.1CCh. 10 - Prob. 94.2CCh. 10 - Prob. 94.3CCh. 10 - Prob. 94.4CCh. 10 - Prob. 94.5CCh. 10 - Prob. 94.6CCh. 10 - Prob. 95.1CCh. 10 - Prob. 95.2C
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