line 19 -70,000 & -60,000 From the following data determine for the current year
ID: 2381269 • Letter: L
Question
line 19 -70,000 & -60,000
From the following data determine for the current year the A. rate earned on total assests B. rate earned on Stockholders equity C. rate earned on common stork holder equity D, earning per share on common stock E. price ear rung ratio on common Mock and F. dividend yield on common stock. Assume that the current market price per share of common stock is $25 (Present key figures used in your computation.) Round percentage values to onp decimal place, dollar values to two decimal places and other ratio to one decimal place.Explanation / Answer
A] rate earned on total assets = 110000/(745000+1510000) * 100
=4.88%
B]RATE EARNED ON STOCKHOLDERS EQUITY = 110000/(1200000+230000+250000) * 100
=6.55%
C]RATE EARNED ON COMMON STOCKHOLDERS EQUITY = 110000/(1200000+230000) * 100
=7.69%
D]EARNING PER SHARE ON COMMON STOCK = (110000-25000)/(1200000 DIVIDE BY 25)
=1.77 PER SHARE
E]P/E RATIO ON OMMON STOCK = 25/1.77
=14.12 TIMES
F]DIVIDEND YIELD ON STOCK = 70000/(1200000+230000) * 100
=4.9%
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