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The financial statements of Friendly Fashions include the following selected data (in millions): Required: 1. Calculate the

Question:

The financial statements of Friendly Fashions include the following selected data (in millions):

($ in millions) 2021 2020 $10,043 2$ $11,134 2$ $ 2,310 Sales Net income 312 818 $ 1,850 Stockholders' equity Average shares outstanding (in millions) Dividends per share Stock price 675 $ 0.31 $ 6.20


Required:

1. Calculate the return on equity in 2021.

2. Calculate the dividend yield in 2021.

3. Calculate earnings per share in 2021.

4. Calculate the price-earnings ratio in 2021.

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...
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($ in millions) 2021 2020 $10,043 2$ $11,134 2$ $ 2,310 Sales Net income 312 818 $ 1,850 Stockholders' equity Average shares outstanding (in millions) Dividends per share Stock price 675 $ 0.31 $ 6.20

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1 Return on equity shows how much the company earns from each ...View the full answer


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Ramshad Muhammed
I am a management accountant as well as an SAP FICO Consultant who has good knowledge on the business practices and accounting treatments of the same. Worked in EY as Finance and Accounts analyst and now working as SAP Consultant at Zettamine Labs.
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Related Book For  book-img-for-question
Financial Accounting

Financial Accounting

ISBN: 978-1259914898

5th edition

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

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The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.

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