Question
1. Refer to the following selected financial information from Gomez Electronics. Compute the companys return on total assets for Year 2. Year 2 Year 1
1. Refer to the following selected financial information from Gomez Electronics. Compute the companys return on total assets for Year 2.
Year 2 | Year 1 | |||||
Net sales | $ | 487,000 | $ | 427,950 | ||
Cost of goods sold | 278,000 | 251,820 | ||||
Interest expense | 11,400 | 12,400 | ||||
Net income before tax | 68,950 | 54,380 | ||||
Net income after tax | 47,750 | 41,600 | ||||
Total assets | 320,500 | 298,200 | ||||
Total liabilities | 172,900 | 169,000 | ||||
Total equity | 147,600 | 129,200 | ||||
Multiple Choice
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14.9%.
-
9.8%.
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15.4%.
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2.8%.
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22.3%.
2. A company has net income of $950,000; its weighted-average common shares outstanding are 190,000. Its dividend per share is $0.95, its market price per share is $98, and its book value per share is $91.00. Its price-earnings ratio equals:
Multiple Choice
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18.20.
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6.05.
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19.60.
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7.00.
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7.95.
3. A company paid $0.74 in cash dividends per share. Its earnings per share is $4.46 and its market price per share is $26.75. Its dividend yield equals:
Multiple Choice
-
16.59%.
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2.77%.
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6.03%.
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3.61%.
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16.67%.
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