Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. The earnings per share. b. The dividend yield ratio. c. The dividend payout ratio. d. The price-earnings ratio. e. The book value per share

image text in transcribed

a. The earnings per share.

b. The dividend yield ratio.

c. The dividend payout ratio.

d. The price-earnings ratio.

e. The book value per share of common stock.

Lydex Company Comparative Balance Sheet This Year Last Year $ 918.ee 2,500,000 3,550,eee 250,00 7,210,eee 9,420,000 $ 16,630,000 $ 1,150,00 38e, eee 1,680, eee 2,880, ee 190, eee 5,240, eee 9, eee, eee $ 14,240, eae Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 19% Total liabilities Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 3,960, eae 3,640,000 7,6ee,ese $ 2,880,000 3,840, 80e 5,920, eee 7,800,000 2, e38, eae 9, 230,00 $ 16, 630,000 7,980, ene 1,320, eee 8, 320, eee $ 14,240, eee Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,810,eee $ 13,880, eee Cost of goods sold 12,648, see 9,810, eee Gross margin 3,162,eee 3,279, eee Selling and administrative expenses 1,298,eee 1,584, ee Net operating income 1,864, 1,686,00 Interest expense 364,eee 384,000 Net income before taxes 1,500,00 1,382,000 Income taxes (30%) 450, eee 414,600 Net income 1,050, eee 967,400 Common dividends 340,eee 483,700 Net income retained 710,eee 483,700 Beginning retained earnings 1,320,00 836, 300 Ending retained earnings $ 2,03e,eee $ 1,320,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: 2.3 1.e Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 4e days 6 days 8.7% 0.7 5.2 10 You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end of this year is $84 share and that at the end of last year it was $52. For both this year and last year, compute: (Round your "Percentage" answers to ecimal place and other Intermediate and final answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions