Comparative financial statements for Heritage Antiquing Services

Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear below. The company did not issue any new common or preferred stock during the year. A total of 600 thousand shares of common stock were outstanding. The interest rate on the bond payable was 14%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the company€™s common stock at the end of the year was $26. All of the company€™s sales are on account.

Comparative financial statements for Heritage Antiquing Services


Comparative financial statements for Heritage Antiquing Services

Required:
Compute the following financial ratios for common stockholders for this year:
1. Gross margin percentage.
2. Earnings per share of common stock.
3. Price-earnings ratio.
4. Dividend payout ratio.
5. Dividend yield ratio.
6. Return on total assets.
7. Return on common stockholders€™ equity.
8. Book value pershare.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Dividend Yield
Dividend yield refers to a stock's annual dividend payments to shareholders, expressed as a percentage of the stock's current price. The dividend per share that a company pays divided by the share price. This is reported on the financial statements...
Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...