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Q7. An investor relations spokesperson for the Square Door Corporation was quoted as saying that Square Door
shares were a bargain, selling at a price-to-earnings (P/E) ratio of 12, relative to the S& 500 average P/E of 15.3.
The financial statements reported net earnings of $126 million, or $4.00 per share. The notes to the financial
statements included a statement that income for the year included a $31.5 million (after-tax) gain from the
reclassification of certain assets from its investment portfolio to its trading portfolio. What would be the normalized
P/E?
A) 16.
B) 15.
C) 13.
Q8. National Chemical Corp. (NCC) reports 2003 net earnings of $354.2 million. NCC’s financial statements and disclosures also
indicate pretax impairment charges of $78.1 million and pretax amortization of $24.9 million. NCC also reports an after-tax loss
of $23.4 million on the early retirement of debt and receipt of $118 million after-tax from an insurance claim. NCC effective tax
rate is 36%. What are the normal operating earnings of NCC?
A) $414.68 million.
B) $480.60 million.
C) $325.52 million.
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发表于 2009-3-3 12:42
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