Harley-Davidson, inc. (HOG), is a leading motorcycle manufacturer in the United States. The company manufactures and...

  

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Harley-Davidson, inc. (HOG), is a leading motorcycle manufacturer in the United States. The company manufactures and sells a number of different types of motorcycles, a complete line of motorcycle parts, and brand-related accessories, clothing, and collectibles. The following information is available for three recent years (in millions except per-share amounts): Year 3 Year 2 Year 1 Net income (loss) $ 523 $ 692 Preferred dividends Interest expense None None $ 752 None $ 31 $ 30 $ 12 Shares outstanding for computing earnings per share Cash dividend per share 173 181 204 $ 1.46 $ 1.40 $1.24 Average total assets $9,931 $9,932 $9,760 Average stockholders' equity $1,882 $1,880 $2.374 Average stock price per share $50.88 $58.34 $45.39 1. Calculate the following ratios for each year. Round to one decimal place except dollar amounts, which should be rounded to the nearest cent. a. Return on total assets b. Return on stockholders' equity c. Earnings per share d. Dividend yield e. Price-earnings ratio using the average price per share of stock. 2. What is the average debt ratio and the ratio of liabilities to stockholders' equity for Years 1, 2, and 3? 3. Comment on the results in (1) and (2). Harley-Davidson, inc. (HOG), is a leading motorcycle manufacturer in the United States. The company manufactures and sells a number of different types of motorcycles, a complete line of motorcycle parts, and brand-related accessories, clothing, and collectibles. The following information is available for three recent years (in millions except per-share amounts): Year 3 Year 2 Year 1 Net income (loss) $ 523 $ 692 Preferred dividends Interest expense None None $ 752 None $ 31 $ 30 $ 12 Shares outstanding for computing earnings per share Cash dividend per share 173 181 204 $ 1.46 $ 1.40 $1.24 Average total assets $9,931 $9,932 $9,760 Average stockholders' equity $1,882 $1,880 $2.374 Average stock price per share $50.88 $58.34 $45.39 1. Calculate the following ratios for each year. Round to one decimal place except dollar amounts, which should be rounded to the nearest cent. a. Return on total assets b. Return on stockholders' equity c. Earnings per share d. Dividend yield e. Price-earnings ratio using the average price per share of stock. 2. What is the average debt ratio and the ratio of liabilities to stockholders' equity for Years 1, 2, and 3? 3. Comment on the results in (1) and (2).