Highlander Inc. reported the following selected information for the past three years (in millions, except for per share amounts):

Instructions

a. Calculate Highlander?s return on equity, earnings per share, and price-earnings ratios before and after discontinued operations for 2021, 2020, and 2019.

b. Evaluate Highlander?s performance over the past three years before and after discontinued operations.

Taking It Further

Explain how reporting discontinued operations separately would affect your analysis of Highlander?s performance.

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2021 2019 2020 Net sales Average shareholders' equity Profit from continuing operations Loss on disposal of discontinued operations from discontinued operations Profit Weighted average number of common shares Market price per share $4,000 $3,100 2,400 $2,600 1,800 $ 810 $ 570 $1,160 340 110 80 70 $ 710 $ 730 $ 500 300 290 $33.65 280 $44.80 $45.50