Chapter 12, Problem 82E

To determine

(a)

Introduction:

The shareholders ratio measures the assets of the company that are funded by the shareholders equity. In return value is paid to the shareholders in terms of dividend.

To find:

The earnings per share, return on common equity, dividend yield ratio, and dividend payout ratio of Steele’s for the year 2018 and 2019.

To determine

(b)

Introduction:

The shareholders ratio measures the assets of the company that are funded by the shareholders equity. In return value is paid to the shareholders in terms of dividend

To state:

If there were any significant changes in the ratios from 2018 to 2019 and determine whether Steele was a better investment at 31^st Dec 2018 or 31^st Dec 2019.