Riverbed Inc. has the following selected financial data:

                                                                                      2023         2022 

Net income                                                             $718,000     $684,000 

Total assets                                                              5,140,000        4,537,000 

Preferred shares, 6%, 

cumulative                                                                610,000            610,000 

Common shares                                                      323,000             323,000

 Retained earnings                                                  2,787,000         2,206,000 

Accumulated other comprehensive income          139,000        125,500 

Total shareholders’ equity                                      3,859,000         3,264,500 

Cash dividends paid in the year                               137,000            180,900 

Market price of common shares                                $97.72               $63.12 

Weighted average number of common shares      83,000             83,000

 There were no preferred dividends in arrears.

(a) Calculate the following ratios for 2023: 

(1) Rate of return on common shareholders’ equity 

(2) Payout ratio

(3) Price earnings ratio enter a number of times rounded to 2 decimal places times

 (4) Book value $enter a dollar amount rounded to 2 decimal places 

(5) Rate of return on total assets enter percentages rounded to 2 decimal places %

Answer rating: 100% (QA)

1 Rate of return on common shareholders equity ROE Net Income Common Shareholders Equity RO... View the full answer