XYZ Company has the following information:

• Total assets at the beginning of the year: $500,000
• Total assets at the end of the year: $800,000
• Total liabilities at the beginning of the year: $200,000
• Total liabilities at the end of the year: $400,000
• Net income for the year: $150,000
• Dividends paid during the year: $50,000

Calculate the following ratios:

1. Debt to equity ratio
2. Return on assets ratio
3. Return on equity ratio
4. Earnings per share
5. Price-earnings ratio

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Debt to equity ... View the full answer