0000 T-Mobile 9:58 AM ezto.mheducation.com Question 2 os 2.00 points The followi
ID: 2567102 • Letter: 0
Question
0000 T-Mobile 9:58 AM ezto.mheducation.com Question 2 os 2.00 points The following information was available for the year ended December 31, 2016 Required a. Calculate margin, turnover, and ROI for the year ended December 31, 2016. (Round your intermediate calculations and final answers to 2 decimal places.) b. Calculate ROE for the year ended December 31, 2016. (Round your answer to 2 decimal places.) c. Calculate the pricelearnings ratio for 2016. (Round your answer to 2 decimal places.) d. Calculate the dividend payout ratio for 2016. (Round your answer to 2 decimal places.) e. Calculate the dividend yield for 2016. (Round your answer to 2 decimal places.)Explanation / Answer
Answer :
a) Margin = Profit / net sales * 100
= ($ 45,600/ 320,000) * 100
=14.25%
ROI = Net Profit / Investment * 100
= 45,600/620,000 *100
= 7.35%
b) ROE = Net Income / Shareholders equity
= 45,600/325,000 *100
= 14.03%
c) Price earnings ratio = Market value per share / Earnings per share
= $ 25.50/ 3
= $ 8.5
d) Dividend payout ratio = Dividend per share / Earnings per share
= 1.25/3
= 41.66%
e) Dividend yield ratio = Annual dividend per share / market price per share
= 1.25/25.5
= 4.90%
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