Question
6. What do the following data, taken from a comparative balance sheet, indicate about the company's ability to borrow additional long-term debt in the
6. What do the following data, taken from a comparative balance sheet, indicate about the company's ability to borrow additional long-term debt in the current year as compared to the preceding year? Fixed assets (net) Total long-term liabilities 7. Current Year $1,260,000 300,000 Preceding Year $1,360,000 400,000 a. How does the return on total assets differ from the return on stockholders' equity? b. Which ratio is normally higher? Why? 8. The Kroger Company (KR), a grocery store chain, recently had a price-earnings ratio of 13.2, while the average price-earnings ratio in the grocery store industry was 17.0. What might explain this difference? 9. The dividend yield of Suburban Propane Partners, L.P. (SPH) was 10.2% in a recent year, and the dividend yield of Alphabet Inc. (GOOG) was 0% in the same year. What might explain the difference between these ratios? 10. Describe two reports provided by independent auditors in the annual report to shareholders.
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