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 3.9 V % 4.3 x % 6.3V % b. Return on stockholders' equity 22.9 V 24.5 V % 32.7V % c. Earnings per share 4.84V Accounting numeric field d. Dividend yield 2.6V % 3.0 V % 2.6 V % e. Price-earnings ratio 19.0V 14.0V 9.8 V 2. Based on these data, which of the following statements is correct? 1. Deere's profitability, as measured by earnings per share, has improved significantly during the three-year period. 2. The returns on total assets and total stockholders' equity have also improved significantly during this period. 3. The dividend yield increased significantly in Year 3 due to a large increase in the cash dividend. 4. The price-earnings ratio has improved during this three-year period as the share price has increased at a faster pace than earnings.

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 3.9 V % 4.3 x % 6.3V % b. Return on stockholders' equity 22.9 V 24.5 V % 32.7V % c. Earnings per share 4.84V Accounting numeric field d. Dividend yield 2.6V % 3.0 V % 2.6 V % e. Price-earnings ratio 19.0V 14.0V 9.8 V 2. Based on these data, which of the following statements is correct? 1. Deere's profitability, as measured by earnings per share, has improved significantly during the three-year period. 2. The returns on total assets and total stockholders' equity have also improved significantly during this period. 3. The dividend yield increased significantly in Year 3 due to a large increase in the cash dividend. 4. The price-earnings ratio has improved during this three-year period as the share price has increased at a faster pace than earnings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

TRUE OR FALSE Earnings per share is found by taking the net income for the year divided by the number of common shares outstanding at the end of the year.
Questions: 1. Price-earnings ratio 2. Dividend payout ratio 3. Dividend yield ratio
. Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 7% $1,300,000 Preferred $10 stock, $50 par 88,000 Common stock, $10 par 598,400 Income before income tax expense was $373,100, and income taxes were $56,300 for the current year. Cash dividends paid on common stock during the current year totaled $31,715. The common stock was selling for $35 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield %
A company reports the following: Net income $133,720 Preferred dividends 12,060 Average stockholders' equity 1,064,390 Average common stockholders' equity 887,500 Round percentages to one decimal place. a. Determine the return on stockholders' equity.fill in the blank 1% b. Determine the return on common stockholders' equity.fill in the blank 2%
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 6% $1,500,000 Preferred $10 stock, $100 par $88,000 Common stock, $14 par $954,800.00 Income before income tax was $171,000, and income taxes were $25,800 for the current year. Cash dividends paid on common stock during the current year totaled $16,368. The common stock was selling for $16 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock 2$ е. Dividend yield %
hr.3
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the current year totaled $92,400. The common stock was selling for $240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio 4.6 times b. Earnings per share on common stock 19.03 x c. Price-earnings ratio 12.6 X d. Dividends per share of common stock 4.80 V e. Dividend yield 2 V %
Common Stockholders' Profitability Analysis A company reports the following: Net income $210,000 8,400 1,680,000 1,095,652 Preferred dividends Average stockholders' equity Average common stockholders' equity Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If required, round your answers to one decimal place. a. Return on Stockholders' Equity b. Return on Common Stockholders' Equity % %
Calculate: a). The average stock return from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period. Comparative Balance Sheets As of December 31 Assets: 20X3 20X2 20X1 Cash $ 210,000 $ 780,000 $ 1,530,000 Accounts Receivable 315,000 265,000 240,000 Inventory 436,000 405,000 330,000 Prepaid Insurance 15,000 18,000 21,000 Total Current Assets $ 976,000 $ 1,468,000 $ 2,121,000 Land 1,650,000 1,630,000 1,400,000 Buildings 2,300,000 1,760,000 1,400,000 Less: Accumulated Depreciation (560,000) (490,000) (440,000) Net Buildings 1,740,000 1,270,000 960,000 Total Long-Term Assets 3,390,000 2,900,000 2,360,000 Total Assets 4,366,000 4,368,000 4,481,000 Liabilities & Stockholder's Equity Accounts Payable 215,000 134,000 185,000 Salaries and Wages Payable 63,000…
Profitability ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 December 31 20Y7 20Y6 December 31 20Y5 Total assets $281,000 $253,000 $225,000 Notes payable (8% interest) 90,000 90,000 90,000 Common stock 36,000 36,000 36,000 Preferred 5% stock, $100 par (no change during year) Retained earnings 18,000 97,870 18,000 70,390 18,000 54,000 < The 2017 net income was $28,380, and the 20Y6 net income was $17,290. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 2016 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. When required, round your answers to one decimal place. 20Y7 20Y6 Return on total assets Return on stockholders' equity 0.1 % 0.1 % % % Return on common stockholders' equity % 200 % b. The profitability…
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the current year totaled $92,400. The common stock was selling for $240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield % %24 %24
The following information relates to a company: Year 1 Earnings por share ($) O 0.30 0.13 0.339 0.318 0.132 Dividends per share (S) 0.139 Share price at start of year ($) 1.95 1.98 2.01 Which TWO of the following statements are correct? The dividend payout ratio is greater than 40% in every year in the period □ Mean growth in dividends per share over the period is 3.6% O The PE Ratio is greater than 6 in every year in the period O Total shareholder return for the third year is 19.4% 3 0.357 0.15 2.25