Average number of shares outstanding was 16,000 for Year 3 and 15,000 for Year 2. Required Compute

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Average number of shares outstanding was 16,000 for Year 3 and 15,000 for Year 2.

Required

Compute the following ratios for Forman Company for Year 3 and Year 2 and round computations to two decimal points:

a. Number of times interest was earned.

b. Earnings per share based on the average number of shares outstanding.

c. Price-earnings ratio (market prices: Year 3, $30 per share; Year 2, $24 per share).

d. Return on equity.

e. Net margin.

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Related Book For answer-question

Introductory Financial Accounting For Business

ISBN: 9781260575309

2nd Edition

Authors: Thomas Edmonds, Christopher Edmonds, Mark Edmonds, Jennifer Edmonds, Philip Olds

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Question Posted: Jan 01, 2021 01:38 AM

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Average number of shares outstanding was 16,000 for Year 3 and 15,000 for Year 2. Required Compute

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a Times interest earned Year 3 180000 20000 9 times Year ...View the full answer

Introductory Financial Accounting For Business

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