Q5.1

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Liberty University *

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212

Subject

Finance

Date

Apr 3, 2024

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pdf

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1

Uploaded by SargentRhinoceros3522

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Homework: Financial Statement Analysis Assignment @@ Submitted i Required information Part 2 of 2 Additional information about the company follows. 179/2 Common stock market price, December 31, Current Year $ 32.00 points awarded Common stock market price, December 31, 1 Year Ago 30.00 Annual cash dividends per share in Current Year 0.38 Scored Annual cash dividends per share 1 Year Ago 0.19 For both the current year and one year ago, compute the following ratios: eBook 1. Return on equity. Hint 2, Dividend yield. 3a. Price-earnings ratio on December 31. Print 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A | Required 3B Compute the dividend yield for each year. Note: Round your answers to 2 decimal places. Dividend Yield Numerator: / Denominator: = Dividend Yield Annual cash dividends per share ! |Market price per share = Dividend yield Current Year: $ 038 /| $ 32.00| = 1.2(% 1 Year Ago $ 019 / | § 30.00| = 0.6|% < Required 1 Required 3A > Explanation 1 Return on common stockholders' equity Current Year: $39,364 / (($345,867 + $313,509) / 2) = 11.9% 1 Year Ago: $36,652 / (($313,509 + $292,754) / 2) = 12.1% 2, Dividend yield Current Year: $0.38 / $32.00 =1.2% 1 Year Ago: $0.19/ $30.00 = 0.6% 3. Price-earnings ratio Current Year: $32.00/ $2.42 =13.2 % Prev of 19 36.96/38 Total points awarded Help Exit Explanation Show my answers a
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