Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsTotal liabilities and equityInterest expenseIncome tax expenseTotal costs and expensesNet incomeCurrent Year$ 35,467102,794127,92511,888335,329$ 613,403For both the current year and one year ago, compute the following ratios:ه له مه له :. .: لهThe company's income statements for the Current Year and 1 Year Ago, follow.For Year Ended December 31SalesCost of goods soldOther operating expenses$ 149,683117,626162,500183,594$ 613,403$ 486,429247,201Current Year13,55610,367Vanu$ 797,424Earnings per shareAdditional information about the company follows.Common stock market price, December 31, Current YearCommon stock market price, December 31, 1 Year AgoAnnual cash dividends per share in Current YearAmmin11 Year Ago 2 Years Ago$ 42,30474,03195,87111,327305,263$ 528,796757, 553$ 39,871$ 2.45$ 88,473125,272162,500152, 551$ 528,796$ 409,024159, 20514,4739,439$ 43,19457,592$ 32.0030.000.281163, 1944,751267,569$ 436,3001 Year Ago$ 57,01694,494163,500121,290$ 436,300$ 629,267592,141$ 37, 126$ 2.28 Additional information about the company follows.Common stock market price, December 31, Current YearCommon stock market price, December 31, 1 Year AgoAnnual cash dividends per share in Current YearAnnual cash dividends per share 1 Year AgoFor both the current year and one year ago, compute the following ratios:1. Return on equity.2. Dividend yield.3a. Price-earnings ratio on December 31.3b. Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth?Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3A Required 3B$ 32.0030.000.280.14Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.)Price-Earnings RatioCurrent Year:1 Year Ago:Numerator:< Required 2Denominator:Required 3B>====Price-Earnings RatioPrice-earnings ratio00

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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All other things being equal, if a company issues a 1% stock dividend, what is the effect on the following ratios? Total debt Times interest Financial leverage to equity A. Increase earned ratio Increase B. Increase No effect Increase Increase C. Increase No effect No effect D. No effect No effect No effect Option A Option B Option C Option D
The following information is provided for Apolis Inc. Total common stockholders' equity on Dec. 31, 2020 $302,000 Total common stockholders' equity on Dec. 31, 2019 $288,000 Sales, 2020 $165,000 Total assets $605,000 Common shares outstanding, 2020 Dividends declared and paid, 2020 Market price per share, Dec. 31, 2020 If the payout ratio is .20, what is the return on equity? Select one: O O O a. 0.10 b. 0.09 c. 0.08 d. 0.07 « Previous 50,000 $6,000 $21 Save Answers
Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.5× Return on assets (ROA) 8.0% Return on equity (ROE) 12.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Debt-to-capital ratio: %
Match the following ratio functions with the ratio (place the number of your chosen answer into the box with the border beside the term you think it goes with : Dividend Yield Debt ratio Current Ratio Price/Earnings Ratio Acid-test ratio Earnings per share 1. The amount of net income earned for each share of the company's common stock 2. The percentage of a stock's market value returned to stockholders as dividends each period 3. The ability to pay current liabilities with current assets. 4. The percentage of assets financed with debt. 5. The ability to pay all current liabilities if they come due immediately. 6. The market price of $1 of earnings.
Evaluating a stock as an investment Data for Oxford State Bank follow Data for Oxford State Bank follow Evaluate the common stock of Oxford State Bank as an investment. Specifically, use the three stock ratios to determine whether the common stock has increased or decreased in attractiveness during the past year Round to two decimal places.
Find for Armstrong Company and Blair Company : Liquidity Ratio (a) Current Ratio Market tests (b) Price/earnings ratio (c) Divident yield ratio (%)
Campare these two company’s using financial ratios
In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a businesstransaction or event relating to the operating activities of Delta Company (each transaction should be considered independently).Business Transaction or Event Ratio1. Declared a cash dividend. Current ratio2. Sold inventory on account at cost. Acid-test ratio3. Issued bonds with an interest rate of 8%. The company’s Return on commonreturn on assets is 10%. stockholders’ equity4. Net income decreased by 10% between last year and this Times interest earnedyear. Long-term debt remained unchanged.5. Paid a previously declared cash dividend. Current ratio6. The market price of the company’s common stock dropped Dividend payout ratiofrom $24.50 to $20.00. The dividend paid per share remainedunchanged.7. Obsolete inventory totaling $100,000 was written off as a loss. Inventory turnover ratio8. Sold inventory for cash at a profi t. Debt-to-equity ratio9. Changed customer credit terms…
Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report: Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Net income Previous Year Current Year $94,500 $129,600 1,000,000 1,500,000 Previous Year $ Current Year $ 5.13 7.70 51.30 Calculate the return on equity for Evans & Sons for each year. Did the return improve? Numerator 5.40 8.64 56.70 Denominator ◆ Average stockholders' equity X 8 x Did the return improve? The return on common stockholders' equity decreased X X from the previous year to the current year. ROE % %
What is the answer for these? and how do we find them k. Return on common stockholders' equity % %l. Price-earnings ratio, assuming that the market price was $72.12 per share on May 29, 2018, and $53.06 per share on May 30, 2017.
Today's dividend yield for standard supply is computed by utilizing the formula C = A/S where A is the most recent annual dividend (in dollars) and S is the current share expense (in dollars). Encounter the function C's domain.
(a) Compute the expected book value per share at time 1. (b) Compute the expected earnings per share of DTI at time 2. (c) Compute the expected value of the ex-dividend stock price at time 2. (d) Compute the expected value of the ex-dividend stock price at time 0. (e) Compute the expected return (over a single-period) on the stock of DTI at time 0 (in %).

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