Analyze Deere & Company Deere & Company (DE) manufactures and distributes farm and construction machinery that...
Analyze Deere & Company
Deere & Company (DE) manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere’s credit division loans money to customers to finance the purchase of their farm and construction equipment.
The following information is available for three recent years (in millions except per-share amounts):
| Year 3 | Year 2 | Year 1 | ||||
| Net income (loss) | $1,523.9 | $1,940.0 | $3,161.7 | |||
| Preferred dividends | $ 0.00 | $ 0.00 | $ 0.00 | |||
| Interest expense | $ 763.7 | $ 680.0 | $ 664.0 | |||
| Shares outstanding for computing earnings per share | 315 | 334 | 363 | |||
| Cash dividend per share | $ 2.40 | $ 2.40 | $ 2.22 | |||
| Average total assets | $ 57,965 | $ 59,642 | $ 60,429 | |||
| Average stockholders’ equity | $ 6,644 | $ 7,912 | $ 9,667 | |||
| Average stock price per share | $ 92.03 | $ 81.10 | $ 85.58 |
1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place, except for per-share amounts. Round per-share amounts to two decimal places.):
| Year 3 | Year 2 | Year 1 | ||||||||
| a. | Return on total assets | % | % | % | ||||||
| b. | Return on stockholders' equity | % | % | % | ||||||
| c. | Earnings per share | $ | $ | $ | ||||||
| d. | Dividend yield | % | % | % | ||||||
| e. | Price-earnings ratio | |||||||||
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Analyze Deere & Company Deere & Company (DE) manufactures and distributes farm and construction machinery that...
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1.
2.
3.
4.
5.
Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid in capital in excess of par-Common stock Retained earnings Year 2 $600,000 60,000 900,000 125,000 350,000 100,000...
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