Question

Balance Sheet (Millions of S) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities 2019 $4,200 17,500 20,300 $42.000 $28.000 $70,000 $22,509 14,391 6,000 $42.900 Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $11,000 $53,900 $3,542 12,558 $16,100 $70,000 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) 2019 $105,000 97,650 2,100 $5,250 1,020 $4,230 1,058 $2,538 Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions of $) Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 500.00 $888.30 6% 40% $60.91
what is the debt to campital ratio?

and ROIC

and dividends per share

Answer 1

Debt to capital ratio = (Debt/Debt + Shareholders equity)
Debt = Total liabilities
Shareholders equity = Total Assets - Total Liabilities
Total Liabilities = 53900
Total Assets = 70000
Debt to capital ratio = (53900)/((53900+(70000 - 53900))
Debt to capital ratio = (53900)/(53900+16100)
Debt to capital ratio = (53900/70000)
Debt to capital ratio = .77.
The debt to capital ratio is equal to 77%.

Return on invested capital (ROIC) = (Net income - Dividends)/Total capital
Total capital = Total Assets = Total Liabilities + Shareholders equity
	$ millions
Net income	2538
Dividends	888.3
Total capital	70000
Total shares outstanding	500 million
ROIC = (2538 - 888.3)/70000
ROIC = .023567
The ROIC is 2.36%.
The dividend per share = Sum of dividends over a period/Ordinary shares outstanding for the period
The dividend per share = 888.3/500
Dividend per share = 1.7766
The dividend per share is $1.78.