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 $40 Assume that the firm has no common stock equivalents. The tax rate is 34%. Required: 1. Compute the return on assets. Round your answer to three decimal places. 0.087 X 2. Compute the return on common stockholders' equity. Round your answer to two decimal places. 25 X 3. Compute the earnings per share. Round your answer to two decimal places. %$. per share 4. Compute the price-earnings ratio. Round your answer to two decimal places. 5. Compute the dividend yield. Round your answer to four decimal places. 6. Compute the dividend payout ratio. Round your answer to two decimal places.

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 $40 Assume that the firm has no common stock equivalents. The tax rate is 34%. Required: 1. Compute the return on assets. Round your answer to three decimal places. 0.087 X 2. Compute the return on common stockholders' equity. Round your answer to two decimal places. 25 X 3. Compute the earnings per share. Round your answer to two decimal places. %$. per share 4. Compute the price-earnings ratio. Round your answer to two decimal places. 5. Compute the dividend yield. Round your answer to four decimal places. 6. Compute the dividend payout ratio. Round your answer to two decimal places.

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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