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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

  • 14.9%.

  • 9.8%.

  • 15.4%.

  • 2.8%.

  • 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

  • 18.20.

  • 6.05.

  • 19.60.

  • 7.00.

  • 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%.

  • 2.77%.

  • 6.03%.

  • 3.61%.

  • 16.67%.

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