Profitability Ratios The following information has been gathered for Malette Manufacturing: Net income $5,000,000 Interest expense 400,000 Average total assets 60,000,000 Preferred dividends 400,000 Common dividends $1,200,000 Average common shares outstanding 800,000 shares Average common stockholders' equity $20,000,000 Market price per common share $40 Assume that the firm has no common stock equivalents. The tax rate is 34%. Required: 1. Compute the return on assets. Round your answer to three decimal places. fill in the blank 1 2. Compute the return on common stockholders' equity. Round your answer to two decimal places. fill in the blank 2 3. Compute the earnings per share. Round your answer to two decimal places. $ fill in the blank 3 per share
-
Profitability Ratios
The following information has been gathered for Malette Manufacturing:
Net income $5,000,000 Interest expense 400,000 Average total assets 60,000,000 Preferred dividends 400,000 Common dividends $1,200,000 Average common shares outstanding 800,000 shares Average common stockholders' equity $20,000,000 Market price per common share $40 Assume that the firm has no common stock equivalents. The tax rate is 34%.
Required:
1. Compute the return on assets. Round your answer to three decimal places.
fill in the blank 12. Compute the return on common stockholders' equity. Round your answer to two decimal places.
fill in the blank 23. Compute the earnings per share. Round your answer to two decimal places.
$ fill in the blank 3 per share4. Compute the price-earnings ratio. Round your answer to two decimal places.
fill in the blank 45. Compute the dividend yield. Round your answer to four decimal places.
fill in the blank 56. Compute the dividend payout ratio. Round your answer to two decimal places.
fill in the blank 6
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
