Please use the balance sheet and income statement to complete the task required

a. Compute or determine the following for the years 2014-2015:

1.Degree of financial leverage

2.Earnings per common share

3. Price/earnings ration

4.Percentage of earnings retained

5.Dividend payout

6.Dividend yield

7.Book value per share

8.Materiality of options (use stock options outstanding)

b. Comment from the perspective of an investor

 

Task Donna Corporation Balance Sheets December 31, 2014 through December 31, 2018 (Dollars in thousands) 2015 2014 Assets Currents assets Cash 28,000 27,000 Accounts receivable 130.000 128,000 Inventories 146,000 144,000 Total current assets 304,000 299,000 Property, plant, and equipment, net 418.000 415,000 Total assets 722,000 714,000 Liabilities and Stockholders Equity Current Liabilities: Accounts payable 124,000 125,000 Income taxes 13,000 12,000 Total current liabilities 137,000 137,000 Long -term debt Stockholders equity: Preffered stock 68,000 69,000 82,000 290,000 70,000 75,000 290,000 70,000 Common stock Paid-in capital in excess of par, common stock Retained earnings 75,000 517.000 73,000 Total stockholders equity 508.000 Total liabilities and stockholders equity 722,000 714,000 Statement of Earnings Year ended December 31, 2014-2018 (In thousands, except per share) Net sales 2015 2014 935,000 920,000 -579,000 356,000 Cost of goods sold -570,000 Gross profit 350,000 Selling and administrative expense Interest expense -225,000 -224,000 -7,000 -6,900 Earnings from continuing operations before income taxes 124,100 119,000 Income taxes -30,400 -37,400 Earnings from continuing operations Extraordinary gains, net of taxes Net earnings 93,700 81,600 93,700 81,600 Earnings per share: Continuing operations 3.23 2.81