Computational (Show your computations. Round off as follows: e.g. ₩10.64 => ₩11, 0.123456 => 12.35%, 2.4321 => 2.43) 1. BK Corporation gathered the following data at the end of the accounting period,
Computational (Show your computations. Round off as follows: e.g. ₩10.64
=> ₩11, 0.123456 => 12.35%, 2.4321 => 2.43)
1. BK Corporation gathered the following data at the end of the accounting period,
December 31, 20x1:
Net Profit ￦60,000,000
Net Sales revenue 1,200,000,000
Interest expense 25,000,000
Total liabilities (average) 200,000,000
Average income tax rate 40 %
Dividends declared and paid during 20x1 22,500,000
Market price per share of stock at year end 9,000
1) Compute the earnings per share.
2) Compute the dividend yield (ratio).
3) Compute the price-book value ratio.
4) Using the debt-equity ratio, compute the financial leverage effect in
percentage.
2. KG Co. had total assets of ₩1,200,000, total liabilities of ₩500,000, and retained
earnings of ₩300,000 at the beginning of 20x1. For the year, the corporation
declared cash dividends of ₩50,000. At the end of the year, the company had
total assets of ₩1,400,000 and showed the debt ratio of 0.4. The company had
no accumulated other comprehensive income.
1) Compute the total stockholders’ equity at the end of 20x1.
2) Compute KG’s net profit for 20x1, assuming no change in contributed capital
during the year.
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