Refer to the Kepler Company information as shown in Problem 16-45. Also, assume that for last year

Question:

Refer to the Kepler Company information as shown in Problem 16-45. Also, assume that for last year and for the current year, the market price per share of common stock is $2.98. In addition, for last year, assets and equity were the same at the beginning and end of the year.

Required:

1. Compute the following for each year:

a. Return on total assets

b. Return on stockholders’ equity

c. Earnings per share

d. Price-earnings ratio

e. Dividend yield

f. Dividend payout

2. Based on the analysis in Requirement 1, would you invest in the common stock of Kepler Company?

Common Stock
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