Complete the empty frames in the following table and show your work (identify calculations by letter) Sapling
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Question:
Sapling | Preston | |
EBIT (Earnings before interest and taxes) | 300,000 | 190,000 |
Interest expense | A | 15,000 |
Net income | 200,000 | J |
Dividend payout ratio | 35% | K |
Retention ratio | B | 60% |
Dividends declared during the year | C | 40,000 |
Sales | 3,000,000 | L |
Average assets during the year | D | 1,500,000 |
Average debt during the year | 700,000 | M |
Average shareholders' equity during the year | 1,800,000 | N |
Asset turnover ratio | E | 1.3333 |
Debt ratio | F | 0.3333=1/3 |
Return on sales | G | 0.095 |
Return on assets | 0.12 | O |
Return on equity | H | 0.10 |
Market price per share, beginning of year | 20 | P |
Market price per share, end of year | 15 | 20 |
Total shareholder return | I | 0.1556 |
Number of shares outstanding | 150,000 | 50,000 |
Times interest earned | 30 | Q |
Related Book For
Foundations Of Finance
ISBN: 9780135160619
10th Edition
Authors: Arthur J. Keown, John H. Martin, J. William Petty
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