Thomson One; Chapter 9
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Thomson ONE solutions
Chapter 9
THOMSON ONE
1. This Thomson ONE exercise, using the Merck & Company, provides for
payout.
2. This Thomson ONE exercise uses Apple Computer, Dell Computer, and Hewlett-
Packard to address several market factors. These factors include earnings per
Chapter 9
Estimates Tearsheet”.
Required
a. Review the EPS estimate forecasts. Comment on how those forecasts could
influence the market value of the common stock.
These forecasts could be very influential on the market value of the common stock.
b. 1. What is the forward price/earnings ratio for Merck & Company, Inc.?
2. Comment on how the price/earnings ratio is influenced by the earnings
per share forecasts.
Note: The earnings per share forecasts will have a substantial influence on the
computed.
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Note: It is computed by multiplying the market value by the number of shares
outstanding.
2. Go back to “Thomson Full Reports”. Click “Annual Ratios Section”. Under the
heading “Leverage Ratios”, select the dividend payout. Comment on the
dividend payout.
Click “Financials”. Under “Financial Statements” select “Thomson Financials”.
Note: The dividend payout measures the portion of current earnings per common share
being paid out in dividends.
d. Why is the market capitalization different than the total shareholder equity?
Note: The market capitalization is computed by multiplying the market value by the
II. In this part, comparisons are made between Apple Computer (AAPL), Dell Computer
(DELL), and Hewlett-Packard (HPQ).
Required
a. For each of these companies, follow the directions in 1a.
b. For each of these companies, follow the directions in 1, b 1, 2.
-This ratio will change over time.
-The earnings per share forecasts will have a substantial influence on the
c. For each of these companies, follow the directions in 1, c, 1, 2.
Market capitalization is computed by multiplying the market value by the number of
shares outstanding.
d. For each of the companies, follow the directions in 1, d.
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e. Using “Financials”, “Financial Ratios”, “Thomson Ratios”, “Annual Ratios”,
compare the firms using the profitability ratios. Determine the following
profitability ratios for these firms:
1. Return on assets
f. Compare these ratios for these firms.