The following information was available for the year ended December 31, 2013: Sales ............................................................$200,000 Net income .................................................

Question:

The following information was available for the year ended December 31, 2013:

Sales ............................................................$200,000

Net income ................................................. 30,000

Average total assets .................................... 500,000

Average total stockholders’ equity ............ 300,000

Dividends per share.................................... $ 1.20

Earnings per share....................................... 3.00

Market price per share at year-end............. 48.00

Required:

a. Calculate margin, turnover, and ROI for the year ended December 31, 2013.

b. Calculate ROE for the year ended December 31, 2013.

c. Calculate the price/earnings ratio for 2013.

d. Calculate the dividend payout ratio for 2013.

e. Calculate the dividend yield for 2013.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...