In April 2005, General Motors traded at $28 per share on a book value of $49 per share. Analysts were estimating that GM would earn 69 cents per share for the year ending December 2005. The firm was paying an annual dividend at the time of $2.00 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2005.
In April 2005, General Motors traded at $28 per share on a book value of $49 per share. Analysts were estimating that GM would earn 69 cents per share for the year ending December 2005. The firm was paying an annual dividend at the time of $2.00 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2005.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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![In April 2005, General Motors traded at $28 per share on a book value
of $49 per share. Analysts were estimating that GM would earn 69 cents
per share for the year ending December 2005. The firm was paying an
annual dividend at the time of $2.00 per share.
Calculate the return on common equity (ROCE) that analysts were
forecasting for 2005.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F61898547-da24-47ac-880b-8627a8090e05%2F91969a4d-c1d9-4dab-8c0c-8cdebf00a5a4%2Fn70yjqs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In April 2005, General Motors traded at $28 per share on a book value
of $49 per share. Analysts were estimating that GM would earn 69 cents
per share for the year ending December 2005. The firm was paying an
annual dividend at the time of $2.00 per share.
Calculate the return on common equity (ROCE) that analysts were
forecasting for 2005.
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