Condensed balance sheet and income statement data for Jergan Corporation are presented here. Additional information: 1. The
Question:
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Additional information:
1. The market price of Jergan's common stock was \(\$ 7.00, \$ 7.50\), and \(\$ 8.50\) for 2023,2024 , and 2025 , respectively.
2. You must compute dividends declared. All declared dividends were paid in cash in the year of declaration.
Instructions
a. Compute the following ratios for 2024 and 2025.
1. Profit margin.
2. Gross profit rate.
3. Asset turnover.
4. Earnings per share.
5. Price-earnings ratio.
6. Payout ratio.
7. Debt to assets ratio.
b. Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2024 to 2025 of Jergan Corporation.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell