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# QS 17-17 Profit margin L04 Calculate the profit margin for 2017 and evaluate the result against the industry average in Exhibit 17.11, explaining why

## QS 17-17 Profit margin L04 Calculate the profit margin for 2017 and evaluate the result against the industry average in Exhibit 17.11, explaining why it compares favourably or unfavourably (round to two decimal places). QS 17-18 Gross profit ratio LO4 Calculate the gross profit ratio for 2017 and evaluate the result against the industry average in Exhibit 17.11, explaining why it compares favourably or unfavourably (round to two decimal places). QS 17-19 Return on total assets LO4 Calculate the return on total assets for 2017 and evaluate the result against the industry average in Exhibit 17.11, explaining why it compares favourably or unfavourably (round to two decimal places). QS 17-20 Return on common shareholders' equity LO4 Calculate the return on common shareholders' equity for 2017 and evaluate the result against the industry aver- age in Exhibit 17.11, explaining why it compares favourably or unfavourably (round to two decimal places). QS 17-21 Book value per common share LO4 Calculate the book value per common share for 2017 and evaluate the result against the industry average in Exhibit 17.11, explaining why it compares favourably or unfavourably (round to two decimal places). QS 17-22 Earnings per share L04 Calculate the earnings per share for 2017 and evaluate the result against the industry average in Exhibit 17.11, explaining why it compares favourably or unfavourably (round to two decimal places). QS 17-23 Price-earnings ratio L04 ABC Inc.'s common shares have a market value of $60 per share and its EPS is $3.50. XYZ Inc.'s common shares have a market value of $85 per share and its EPS is $4.10. You have done thorough research and are considering purchasing the shares of one of these companies. Required a. Calculate the price-earnings ratio for each company (round to two decimal places). b. Which company's shares will you purchase based on your calculations in (a) above? QS 17-24 Dividend yield LO4 Quick Video Inc. declared and paid an $8 per share cash dividend on its common shares during the cur- rent accounting period. The current market value of the Quick Video Inc. shares is $56 per share. Required a. Calculate the dividend yield (express as a percentage rounded to two decimal places). b. Would the Quick Video Inc. shares be classified as growth or income shares?

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QS 1717 Profit Margin Formula Profit Margin Net Income Sales Revenue 100 Example Calculation Assume Net Income for 2017 1200000 Assume Sales Revenue for 2017 10000000 Profit Margin 1200000 10000000 10...### Get Instant Access to Expert-Tailored Solutions

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