Scenario 1 the financial statements and data shown below are to be used for the next three (3) questions. all figures are in millions except the tax rate and the year-end stock price. balance sheet cash $ 140.0 accounts payable $ 800.0 accts. receivable 880.0 notes payable 600.0 inventories 1,320.0 accruals 400.0 total current assets $2,340.0 total current liabilities $1,800.0 long-term bonds 1,000.0 total debt $2,800.0 common stock 200.0 retained earnings 1,000.0 net plant & equip. 1,660.0 total common equity $1,200.0 total assets $4,000.0 total liabilities & equity $4,000.0 income statement net sales $6,000.0 operating costs 5,599.8 depreciation 100.2 ebit $ 300.0 less: interest 96.0 ebt $ 204.0 less: taxes 81.6 net income $ 122.4 other data shares outstanding 60.00 common dividends $42.8 federal plus state income tax rate 40% year-end stock price $30.60 use scenario 1 to answer the question. what is the firm’s p/e ratio?

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms. if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise. if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise. if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise. both firms will choose to advertise. fizzo will choose not to advertise and pop hop will choose to advertise. both firms will choose not to advertise. again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise. both firms will choose not to advertise. fizzo will choose to advertise and pop hop will choose not to advertise. both firms will choose to advertise.