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10. Calculate the P/E ratio and Market-Capitalization-to-Sales ratios for TJX. Use a stock price of $$71.38$ per share, or a market capitalization of $$84.313$ billion. $_{1}$ (4 points) - For the P/E ratio, use basic EPS. - For Sales, use 'Net sales' - Show 2 significant digits $P/E$ ratio: Market cap to sales: 11. Use these ratios to estimate a market capitalization for a hypothetical private company much smaller than TJX but otherwise similar to TJX. Assume this company has annual sales of $$7.2$ million, EPS of $$2.50$, and 100,000 shares outstanding. (4 points) - Note that the $Earnings per sharePrice per share??SharesShares?=Net IncomeMarket Cap?$. - Show 2 significant digits. Market cap based on TJX's P/E ratio: Market cap based on TJX's Market cap to sales:
THE TJX COMPANIES, INC. I CONSOLIDATED STATEMENTS OF INCOME IN THOUSANDS EXCEPT PER SHARE AMOUNTS
THE TJX COMPANIES, INC. CONSOLIDATED BALANCE SHEETS IN THOUSANDS EXCEPT PER SHARE AMOUNTS Fiscal Year Ended \begin{tabular}{cc} \hline January 29, $2022$ & January 30, \\ 2021 \end{tabular} Assets Current assets: Current liabilities: \begin{tabular}{lrrr} Accounts payable & $$,465,427$ & $4,823,397$ \\ \hline Accrued expenses and other current liabilities & $4,244,997$ & $3,471,459$ \\ Current portion of operatinglease liabilities & $1,576,561$ & $1,677,605$ \\ Current portion oflong-term debt & $749,684$ \\ Federal, state and foreign income taxes payable & $181,155$ & $81,523$ \\ \hline \multicolumn{1}{l}{ Total current liabilities } & $10,468,140$ & $10,803,668$ \\ \hline Other long-term liabilities & $1,015,720$ & $1,063,902$ \\ Non-current deferred income taxes, net & $44,175$ & 37,164 \\ Long-term operatinglease liabilities & $7,575,590$ & $7,743,216$ \\ Long-tem debt & $3,354,841$ & $5,332,921$ \\ \hline \end{tabular}

Solution to Question 10:P/E Ratio of TJX:Basic EPS for Year Ended 29 Jan 2022 is $