Return calculations Use the following balance sheet for McGwire-Sosa Lumber Co. along with the income statement in the previous question to calculate return on assets and return on equity.
|
McGwire-Sosa Lumber 1999 Balance Sheet |
|
|
Cash and cash equivalents |
$ 200 |
|
Operating assets |
200 |
|
Property, plant, and equipment |
1,580 |
|
Other assets |
108 |
|
Total assets |
$2,088 |
|
Current liabilities |
$ 370 |
|
Long-term debt |
306 |
|
Other liabilities |
20 |
|
Total liabilities |
$696 |
|
Paid-in capital |
$ 300 |
|
Retained earnings |
1,092 |
|
Total shareholder equity |
$1,392 |
|
Total liabilities and equity |
$2,088 |
statement, what is the projected stock price (hint: what is the price-earnings ratio?).