hi, can you please help me answer required 1 and 2. thank you and have a great day
Answer:
Requirement 1
a.Earning per share = Net Income / Number of outstanding shares
This Year = 555800 / 40000 = 13.90
Last Year = 317800 / 40000 = 7.95
b.Dividend Yield Ratio = Dividend per share / Market Price per share
This Year = ( 121000 / 40000 ) / 65 = 4.65%
Last Year = (100000 / 40000 ) / 55 = 4.55%
c.Dividend Payout Ratio = Common Dividend / Net Income
This Year = 121000 / 555800 = 21.77%
Last Year = 100000 / 317800 = 31.47%
d.Price Earnings Ratio = Market Price / EPS
This Year = 65 / 13.90 = 4.68
Last Year = 55 / 7.95 = 6.92
e.Book value per share = Total Stockholders Equity / Number of Outstanding shares
This Year = 2141800 / 40000 = 53.55
Last Year = 1707000 / 40000 = 42.68
Requirement 2
a.Gross Margin percentage = Gross Profit / Sales
This Year = 1565000 / 5550000 = 28.2%
Last Year = 1120000 / 4680000 = 23.93%
b.Net Profit Margin = Net Income / Sales
This Year = 555800 / 5550000 = 10%
Last Year = 317800 / 4680000 = 6.79%
c.Return on Total Assets = Net Income / Avg. Total Assets
This Year = 555800 / (3796800 + 2917000 ) / 2 = 555800 / 3356900 = 16.56%
Last Year = 317800 / ( 2917000 + 2770000 ) / 2 = 317800 / 2843500 = 11.18%
d.Return on Equity = Net Income / Avg. Total Stockholders Equity
This Year = 555800 / ( 2141800 + 1707000 ) / 2 = 555800 / 1924400 = 28.88%
Last Year = 317800 / ( 1707000 + 1697000 ) / 2 = 317800 / 1702000 = 18.67%
e.Financial leverage = Total Debt / Total Stockholders Equity
This Year = 1655000 / 2141800 = 0.77
Last Year = 1210000 / 1707000 = 0.71
hi, can you please help me answer required 1 and 2. thank you and have a...
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