2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (f dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Turn 2A Ret On Com Stock 2A Price Earn Ratio Ratio Assets 2A Div Yield Req 2B *........... ......... ............ ............. For both companies compute the return on common stockholders' equity. ...*..* ... .....................l............................................................................l....d.. (d) Return On Common Stockholders' Equity Company Choose Numerator: Choose Denominator Return On Common Stockholders' Equity %3D Net income Cost of goods sold I Average common stockholders' equity = Return On common stockholders' equity Barco 197,431 - 이 / 190,000 = 103.9 % Kyan 231,296 246,000 = 94.0 %
2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $90 per share, compute their (e) price-earnings ratios and (f dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar 2A Tot Asset 2A Ret on Tot Turn 2A Ret On Com Stock 2A Price Earn Ratio Ratio Assets 2A Div Yield Req 2B *........... ......... ............ ............. For both companies compute the return on common stockholders' equity. ...*..* ... .....................l............................................................................l....d.. (d) Return On Common Stockholders' Equity Company Choose Numerator: Choose Denominator Return On Common Stockholders' Equity %3D Net income Cost of goods sold I Average common stockholders' equity = Return On common stockholders' equity Barco 197,431 - 이 / 190,000 = 103.9 % Kyan 231,296 246,000 = 94.0 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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