Question: From the following data, determine for the current year the (a) rate earned on total assets, (b) rate earned on stockholders' equity, (c) rate earned

From the following data, determine for the current year the (a) rate earned on total assets, (b) rate earned on stockholders' equity, (c) rate earned on common stockholders' equity, (d) earnings per share on common stock, (e) price-earnings ratio on common stock, and (f) dividend yield on common stock. Assume that the current market price per share of common stock is $27. (Present key figures used in your computations.)

Current

Preceding

Year

Year

Current assets

$ 735,000

$ 820,000

Property, plant, and equipment

1,500,000

1,400,000

Current liabilities

(non-interest-bearing)

155,000

140,000

Long-term liabilities, 12%

400,000

400,000

Preferred 10% stock

250,000

250,000

Common stock, $25 par

1,200,000

1,200,000

Retained earnings:

Beginning of year

230,000

160,000

Net income for year

85,000

155,000

Preferred dividends declared

(25,000)

(25,000)

Common dividends declared

(60,000)

(60,000)

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