Below is selected financial data regarding current assets and current liabilities for two companie Company B has recently come out of bankruptcy. (S in millions, except per share data) Company A Company B Net Sales $ 27,638 $ 79,919 Net Income 10,217 11,872 Total Liabilities 5,767 99,078 Stockholders' equity, beginning 44,218 14,424 Stockholders' equity, ending 59,194 115.05 18,392 Stock price, ending 165.99 Dividends, per share 0.00 5.50 Average shares outstanding 2,863 million 955 million Required: 1. Calculate and compare the return on equity for the two companies. 2. Calculate and compare the earnings per share for the two companies.
Below is selected financial data regarding current assets and current liabilities for two companie Company B has recently come out of bankruptcy. (S in millions, except per share data) Company A Company B Net Sales $ 27,638 $ 79,919 Net Income 10,217 11,872 Total Liabilities 5,767 99,078 Stockholders' equity, beginning 44,218 14,424 Stockholders' equity, ending 59,194 115.05 18,392 Stock price, ending 165.99 Dividends, per share 0.00 5.50 Average shares outstanding 2,863 million 955 million Required: 1. Calculate and compare the return on equity for the two companies. 2. Calculate and compare the earnings per share for the two companies.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem #2:
Below is selected financial data regarding current assets and current liabilities for two companies.
Company B has recently come out of bankruptcy.
(S in millions, except per share data)
Company A
Company B
Net Sales
$ 27,638
$ 79,919
Net Income
10,217
11,872
Total Liabilities
5,767
99,078
Stockholders' equity, beginning
44,218
14,424
Stockholders' equity, ending
59,194
18,392
Stock price, ending
115.05
165.99
Dividends, per share
Average shares outstanding
0.00
5.50
2,863 million
955 million
Required:
1. Calculate and compare the return on equity for the two companies.
2. Calculate and compare the earnings per share for the two companies.
Item Company A
Company B
Comparison
1.
2.
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