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The financial statements of Friendly Fashions include the following selected data (in millions):($ in millions)                                            2021                     2020Sales                                                        $ 10,043                $ 11,134Net income                                               $ 312                     $ 818Stockholders’ equity                               $ 1,850                   $ 2,310Average shares outstanding (in millions)     675                          –Dividends per share                                  $ 0.31                          –Stock price                                                $ 6.20                          –Required:1. Calculate the return on equity in 2021.2. Calculate the dividend yield in 2021.3. Calculate earnings per share in 2021.4. Calculate the price-earnings ratio in 2021.

The financial statements of Friendly Fashions include the following selected data (in millions):($ in millions)                                            2021                     2020Sales                                                        $ 10,043                $ 11,134Net income                                               $ 312                     $ 818Stockholders’ equity                               $ 1,850                   $ 2,310Average shares outstanding (in millions)     675                          –Dividends per share                                  $ 0.31                          –Stock price                                                $ 6.20                          –Required:1. Calculate the return on equity in 2021.2. Calculate the dividend yield in 2021.3. Calculate earnings per share in 2021.4. Calculate the price-earnings ratio in 2021.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The financial statements of Friendly Fashions include the following selected data (in millions):

($ in millions)                                            2021                     2020
Sales                                                        $ 10,043                $ 11,134
Net income                                               $ 312                     $ 818
Stockholders’ equity                               $ 1,850                   $ 2,310
Average shares outstanding (in millions)     675                          –
Dividends per share                                  $ 0.31                          –
Stock price                                                $ 6.20                          –

Required:
1. Calculate the return on equity in 2021.
2. Calculate the dividend yield in 2021.
3. Calculate earnings per share in 2021.
4. Calculate the price-earnings ratio in 2021.

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