Selected financial data for DC Menswear is provided as follows: ($ in millions) Sales ................................................................................... $ 14,549

Question:

Selected financial data for DC Menswear is provided as follows:

($ in millions)
Sales ................................................................................... $ 14,549
Net income ............................................................................ $ 833
Stockholders’ equity, beginning ............................... $ 4,080
Stockholders’ equity, ending ...................................... $ 2,755
Average shares outstanding ............................................. 485
Dividends per share ........................................................ $ 1.00
Stock price, ending ....................................................... $ 18.93

Required:

1. Calculate the return on equity for DC Menswear. How does it compare with the return on equity for Facebook and IBM reported in the chapter?

2. Calculate the dividend yield for DC Menswear. How does it compare with the dividend yield for Facebook and IBM reported in the chapter?

3. Calculate the price-earnings ratio for DC Menswear. How does it compare with the priceearnings ratio for Facebook and IBM reported in the chapter?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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