Assume that total assets, total stockholders' equity, and total common stockholders' equity at the beginning of 2020 are $23,717 million, $9,040 million, and $9,040

million, respectively. Nike's dividends on preferred stock were $30,000 (SO.03 million) in 2020 and 2021. The market price of Nike's stock at the end of its fiscal year was $98.58 in 2020 and $136.46 in 2021.

1. Compute the following profitability measures for 2020 and 2021. Round measures (a), (b), (c), and (d) to one decimal place. Round all others to two decimal places.

1. Asset turnover
2. Return on total assets
3. Return on stockholders' equity
4. Return on common stockholders' equity
5. Earnings per share on common stock
6. Price-earnings ratio
7. Dividends per share
8. Dividend yield

2. Based on these measures, evaluate Nike's profitability.

Answer rating: 100% (QA)

Profitability Measures for 2020 and 2021 To compute the profitability measures we need additional information about Nikes income statement and balance ... View the full answer