Selected data for Cole Company for 2014 and additional information on industry averages follow. Industry averages Earnings
Question:
Industry averages
Earnings per share ....... $2.00
Price-earnings ratio ...... 8.00
Return on equity ........ 7.30%
Required
Round computations to two decimal points.
a. Calculate and compare Cole Companys ratios with the industry averages.
b. Discuss factors you would consider in deciding whether to invest in thecompany.
Transcribed Image Text:
Eamings (net income) Preferred stock (16,000 shares at $35 par, 696) Common stock (40,500 shares no par, market value $30.40) Retained eamings 240,000 $ 560,000 684,000 480,000 1,724,000 Less: Treasury stock Preferred (1,000 shares) Common (500 shares) Total stockholders' equity S28,800 12,80041,600 $1,682,400
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (15 reviews)
a Earnings per share 240000 31500 521 per share 40000 Preferred shares issued 16000 ...View the full answer
Answered By
Munir Ahmed Jakhro
I am professional Tutor of of Business Courses, I did my four years Bachelor Degree from one of the Top Business schools of World "Institute of Business Administration" in year 2013. Since then I have been working as Tutor of Accounting, Finance tutor on different online platforms like this website. I am have experience of 6 years teaching business courses to students online and offline my professional job at national savings also helped me in accounting understanding .
4.90+
8+ Reviews
10+ Question Solved
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
Question Posted:
Students also viewed these Managerial Accounting questions
-
Selected data for Putin Company for 2014 and additional information on industry averages follow. Industry averages Earnings per share ..... $5.20 Price-earnings ratio ...... 9.50 Return on equity...
-
In deciding whether to invest abroad, management must first determine whether the firm has a sustainable competitive advantage that enables it to compete effectively in the home market. What are the...
-
Selected data for Dalton Company for Year 3 and additional information on industry averages follow. Required a. Calculate Dalton Companys earnings per share ratio, price-earnings ratio, and return on...
-
What is the Antebellum Interregional growth hypothesis?
-
A manganese complex formed from a solution containing potassium bromide and oxalate ion is purified and analyzed. It contains10.0% Mn, 28.6% potassium, 8.8 carbon, and 29.2% bromine by mass. The...
-
The St. Louis to Seattle Railroad is considering acquiring equipment at a cost of $3,600,000. The equipment has an estimated life of 8 years and no residual value. It is expected to provide yearly...
-
You currently owe $\$ 18,000$ on a car loan at $9.5 \%$ interest. If you make monthly payments of $\$ 576.59$ per month, how long will it take you to fully repay the loan?
-
For the financial year ending 30 June 2020, Malkin Ltd has some liability issues for which it seeks your help: a) The company sells widgets and provides a one-year warranty. 100,000 widgets were sold...
-
If there were a shift of $8,000 in sales revenue from the banquet area to the dining room, would you expect the restaurant's overall operating income to increase or decrease? Explain your reasoning...
-
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, and a current market price of (a) $60, (b) $80, (c) $100, and (d) $140?
-
Troy Craft discovered a piece of wet and partially burned balance sheet after his office wasdestroyed by fire. He could recall a current ratio of 1.75 and a debt to assets ratio of 45percent. Assets...
-
Information from Hartel Companys financial statements follows. Average number of shares outstanding was 16,000 for 2014 and 15,000 for 2013. Required Compute the following ratios for Hartel Company...
-
What is the average energy contained in a 1.00-m3 volume near the Earth's surface due to radiant energy from the Sun? See Example 22-4. In Example 22-4 Radiation from the Sun reaches the Earth (above...
-
You are designing a thin transparent reflective coating for the front surface of a sheet of glass. The index of refraction of the glass is 1. 52 , and when it is in use the coated glass has air on...
-
The spectrum of the radiation emitted by hydrogen atoms has a peak at \(\lambda_{\mathrm{r}}=656.3 \mathrm{~nm}\) (red) and a peak at \(\lambda_{\mathrm{b}}=486.1 \mathrm{~nm}\) (blue-green). (a) If...
-
A man spearfishing from a dock sees a fish in the water. In order to hit the fish, should he aim the speargun above, below, or directly at the image he sces?
-
An experimental setup consists of a \(550-\mathrm{nm}\) laser, a screen at a distance of \(0.50 \mathrm{~m}\), and an adjustable-width single slit. At what slit width is the width of the central...
-
The Spitzer Space Telescope, launched in 2003, has a mirror that is \(0.85 \mathrm{~m}\) in diameter and detects infrared light with wavelengths from \(3.00 \mu \mathrm{m}\) to \(180 \mu...
-
Discuss how funding liquidity and market liquidity are linked.
-
Read Case Study Google: Dont Be Evil Unless and answer the following: Why do you think Google was adamant about not wanting to supply information requested by the government concerning the Child...
-
Some years ago, legislators in a state claimed that speculation on land was driving prices to too high a level. They proposed to pass a law that would require the buyer of any piece of land in the...
-
Cahill Company is considering adding a new product. The cost accountant has provided the Following data: Expected variable cost of manufacturing ............. $57 per unit Expected annual fixed...
-
Trevino Company makes and sells products with variable costs of $24 each. Trevino incurs annual fixed costs of $315,000. The current sales price is $87. Required The following requirements are...
-
Vaughn Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Vaughn incurs $240,000 of fixed operating expenses annually. Required a. Determine the sales...
-
:48 t int A company had the following assets and liabilities at the beginning and end of this year. Beginning of the year End of the year Assets $ 82,500 135,500 Liabilities $ 35,368 54,878 a. Owner...
-
Kubin Company's relevant range of production is 26,000 to 35,500 units. When it produces and sells 30,750 units, its average costs per unit are as follows: Direct materials Average Cost per Unit $...
-
(32 pts) Consider the following program, written in no particular language. Show what the program prints in the case of parameter passing by (a) value, (b) reference, (c) value-result, and (d) name....
Study smarter with the SolutionInn App