Calculate the Rate of Return on Investment for Company 2 for the year ending 2019.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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11. Calculate the Rate of Return on Investment for Company 2 for the year ending 2019.

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i docs.google.com/forms/d/e/1FAlpQLSd8y0SiaSvtGskBBd3MdGR5NzjKZ2Gz9n0wPiFIBgvl7cde1g/viewform?hr_submission=Chglhs-v9GgSEAjl5azWiQcSBwj2vuXowwQQAQ
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Personal Banking |...
* Captionless Image
Breakdown
TTM
12/31/2019
12/31/2018
12/31/2017
v Total Revenue
321,782,000
280,522,000
232,887,000
177,866,000
Operating Revenue
321,782,000
280,522,000
232,887,000
177,866,000
Cost of Revenue
239,893,000
205,768,000
173,183,000
137,183,000
Gross Profit
81,889,000
74,754,000
59,704,000
40,683,000
> Operating Expense
65,020,000
60,213,000
47,283,000
36,577,000
Operating Income
16,869,000
14,541,000
12,421,000
4,106,000
> Net Non Operating Interest Inc.
-885,000
-768,000
-977,000
-646,000
> Other Income Expense
305,000
203,000
-183,000
346,000
Pretax Income
16,289,000
13,976,000
11,261,000
3,806,000
Tax Provision
3,009,000
2,374,000
1,197,000
769,000
Earnings from Equity Interest Net .
-100,000
-14,000
9,000
-4,000
v Net Income Common Stockhold.
13,180,000
11,588,000
10,073,000
3,033,000
> Net Income
13,180,000
11,588,000
10,073,000
3,033,000
Diluted NI Available to Com Stock.
13,180,000
11,588,000
10,073,000
3,033,000
Basic EPS
0.0235
0.0207
0.0063
Diluted EPS
0.023
0.0201
0.0062
Basic Average Shares
494,000
487,000
480,000
Diluted Average Shares
504,000
500,000
493,000
Total Operating Income as Reported
16,869,000
14,541,000
12,421,000
4,106,000
Total Expenses
304,913,000
265,981,000
220,466,000
173,760,000
Net Income from Continuing & Dis...
13,180,000
11,588,000
10,073,000
3,033,000
Normalized Income
13,180,000
11,588,000
10,073,000
3,033,000
1:26 PM
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Transcribed Image Text:O jgoi × O BDSW X GBPU X * Goog x * Searc X O (348) X ь МуQ х В BAFЗ Х * 8.4 Tr x E 8.7 UI X E 8.6 TE X * 9.4.2 X E Roun x i docs.google.com/forms/d/e/1FAlpQLSd8y0SiaSvtGskBBd3MdGR5NzjKZ2Gz9n0wPiFIBgvl7cde1g/viewform?hr_submission=Chglhs-v9GgSEAjl5azWiQcSBwj2vuXowwQQAQ * ES P E Apps Personal Banking |... * Captionless Image Breakdown TTM 12/31/2019 12/31/2018 12/31/2017 v Total Revenue 321,782,000 280,522,000 232,887,000 177,866,000 Operating Revenue 321,782,000 280,522,000 232,887,000 177,866,000 Cost of Revenue 239,893,000 205,768,000 173,183,000 137,183,000 Gross Profit 81,889,000 74,754,000 59,704,000 40,683,000 > Operating Expense 65,020,000 60,213,000 47,283,000 36,577,000 Operating Income 16,869,000 14,541,000 12,421,000 4,106,000 > Net Non Operating Interest Inc. -885,000 -768,000 -977,000 -646,000 > Other Income Expense 305,000 203,000 -183,000 346,000 Pretax Income 16,289,000 13,976,000 11,261,000 3,806,000 Tax Provision 3,009,000 2,374,000 1,197,000 769,000 Earnings from Equity Interest Net . -100,000 -14,000 9,000 -4,000 v Net Income Common Stockhold. 13,180,000 11,588,000 10,073,000 3,033,000 > Net Income 13,180,000 11,588,000 10,073,000 3,033,000 Diluted NI Available to Com Stock. 13,180,000 11,588,000 10,073,000 3,033,000 Basic EPS 0.0235 0.0207 0.0063 Diluted EPS 0.023 0.0201 0.0062 Basic Average Shares 494,000 487,000 480,000 Diluted Average Shares 504,000 500,000 493,000 Total Operating Income as Reported 16,869,000 14,541,000 12,421,000 4,106,000 Total Expenses 304,913,000 265,981,000 220,466,000 173,760,000 Net Income from Continuing & Dis... 13,180,000 11,588,000 10,073,000 3,033,000 Normalized Income 13,180,000 11,588,000 10,073,000 3,033,000 1:26 PM O Type here to search 日 IA G 4») ENG 48 12/11/2020 13 +
O jgoi ×
O BDSW X
GBPU X
* Goog X
* Searc x
O (348) X
b My Q x
A BAF3 X
* 8.4 Tr x
E 8.7 UI X
A Meet x
E 8.6 TE X
* 9.4.2 X
E Roun x
i docs.google.com/forms/d/e/1FAlpQLSd8y0SiaSvtGskBBd3MdGR5NzjKZ2Gz9n0wPiFIBgvl7cde1g/viewform?hr_submission=Chglhs-v9GgSEAjl5azWiQcSBwj2vuXowwQQAQ
* ES
P
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Personal Banking ...
* Captionless Image
COmpanTY I
Breakdown
12/31/2019
12/31/2018
12/31/2017
12/31/2016
v Total Assets
225,248,000
162,648,000
131,310,000
83,402,000
v Current Assets
96,334,000
75,101,000
60,197,000
45,781,000
v Cash, Cash Equivalents & S.
55,021,000
41,250,000
30,986,000
25,981,000
Cash And Cash Equivalents
36,092,000
31,750,000
20,522,000
19,334,000
Other Short Term Investme.--
18,929,000
9,500,000
10,464,000
6,647,000
v Receivables
20,816,000
16,677,000
13,164,000
8,339,000
> Accounts receivable
20,816,000
16,677,000
13,164,000
8,339,000
> Inventory
20,497,000
17,174,000
16,047,000
11,461,000
> Total non-current assets
128,914,000
87,547,000
71,113,000
37,621,000
v Total Liabilities Net Minority Int.--
163,188,000
119,099,000
103,601,000
64,117,000
> Current Liabilities
87,812,000
68,391,000
57,883,000
43,816,000
> Total Non Current Liabilities ...
75,376,000
50,708,000
45,718,000
20,301,000
v Total Equity Gross Minority Inte---
62,060,000
43,549,000
27,709,000
19,285,000
v Stockholders' Equity
62,060,000
43,549,000
27,709,000
19,285,000
> Capital Stock
5,000
5,000
5,000
5,000
Additional Paid in Capital
33,658,000
26,791,000
21,389,000
17,186,000
Retained Earnings
31,220,000
19,625,000
8,636,000
4,916,000
Treasury Stock
1,837,000
1,837,000
1,837,000
1,837,000
Gains Losses Not Affecting Re-.
-986,000
-1,035,000
-484,000
-985,000
1:07 PM
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Transcribed Image Text:O jgoi × O BDSW X GBPU X * Goog X * Searc x O (348) X b My Q x A BAF3 X * 8.4 Tr x E 8.7 UI X A Meet x E 8.6 TE X * 9.4.2 X E Roun x i docs.google.com/forms/d/e/1FAlpQLSd8y0SiaSvtGskBBd3MdGR5NzjKZ2Gz9n0wPiFIBgvl7cde1g/viewform?hr_submission=Chglhs-v9GgSEAjl5azWiQcSBwj2vuXowwQQAQ * ES P E Apps Personal Banking ... * Captionless Image COmpanTY I Breakdown 12/31/2019 12/31/2018 12/31/2017 12/31/2016 v Total Assets 225,248,000 162,648,000 131,310,000 83,402,000 v Current Assets 96,334,000 75,101,000 60,197,000 45,781,000 v Cash, Cash Equivalents & S. 55,021,000 41,250,000 30,986,000 25,981,000 Cash And Cash Equivalents 36,092,000 31,750,000 20,522,000 19,334,000 Other Short Term Investme.-- 18,929,000 9,500,000 10,464,000 6,647,000 v Receivables 20,816,000 16,677,000 13,164,000 8,339,000 > Accounts receivable 20,816,000 16,677,000 13,164,000 8,339,000 > Inventory 20,497,000 17,174,000 16,047,000 11,461,000 > Total non-current assets 128,914,000 87,547,000 71,113,000 37,621,000 v Total Liabilities Net Minority Int.-- 163,188,000 119,099,000 103,601,000 64,117,000 > Current Liabilities 87,812,000 68,391,000 57,883,000 43,816,000 > Total Non Current Liabilities ... 75,376,000 50,708,000 45,718,000 20,301,000 v Total Equity Gross Minority Inte--- 62,060,000 43,549,000 27,709,000 19,285,000 v Stockholders' Equity 62,060,000 43,549,000 27,709,000 19,285,000 > Capital Stock 5,000 5,000 5,000 5,000 Additional Paid in Capital 33,658,000 26,791,000 21,389,000 17,186,000 Retained Earnings 31,220,000 19,625,000 8,636,000 4,916,000 Treasury Stock 1,837,000 1,837,000 1,837,000 1,837,000 Gains Losses Not Affecting Re-. -986,000 -1,035,000 -484,000 -985,000 1:07 PM O Type here to search IA G 4») ENG 48 12/11/2020 11 +
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