Pecunious Products, Incorporated’s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 128.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover 9.4 10.6 12.5 Inventory turnover 6.5 7.2 8.0 Dividend yield 7.1% 6.5% 5.8% Dividend payout ratio 40% 50% 60% Dividends paid per share* $ 1.50 $ 1.50 $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Is the level of inventory increasing, decreasing, or remaining constant? Is the market price of the company’s stock going up or down? (pls expound)
Pecunious Products, Incorporated’s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 128.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover 9.4 10.6 12.5 Inventory turnover 6.5 7.2 8.0 Dividend yield 7.1% 6.5% 5.8% Dividend payout ratio 40% 50% 60% Dividends paid per share* $ 1.50 $ 1.50 $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Is the level of inventory increasing, decreasing, or remaining constant? Is the market price of the company’s stock going up or down? (pls expound)
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
Problem 1PS
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Pecunious Products, Incorporated’s financial results for the past three years are summarized below:
|
|
Year 3 |
Year 2 |
Year 1 |
|
Sales trend |
128.0 |
115.0 |
100.0 |
|
Current ratio |
2.5 |
2.3 |
2.2 |
|
Acid-test ratio |
0.8 |
0.9 |
1.1 |
|
Accounts receivable turnover |
9.4 |
10.6 |
12.5 |
|
Inventory turnover |
6.5 |
7.2 |
8.0 |
|
Dividend yield |
7.1% |
6.5% |
5.8% |
|
Dividend payout ratio |
40% |
50% |
60% |
|
Dividends paid per share* |
$ 1.50 |
$ 1.50 |
$ 1.50 |
*There have been no changes in common stock outstanding over the three-year period.
Required:
Is the level of inventory increasing, decreasing, or remaining constant? Is the market price of the company’s stock going up or down? (pls expound)
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