Question
Assume the following data for two companies: Tamla and Amaron. Tamla Amaron Net income $20,000 $250,000 Sales 300,000 1,400,000 Total assets 320,000 1,000,000 Total debt
Assume the following data for two companies: Tamla and Amaron.
Tamla | Amaron | |
Net income | $20,000 | $250,000 |
Sales | 300,000 | 1,400,000 |
Total assets | 320,000 | 1,000,000 |
Total debt | 120,000 | 400,000 |
Stockholders' equity | 200,000 | 600,000 |
$ | $ | |
Dividends to common shareholders | 5,000 | 90,000 |
book value per share | 5.00 | 6.00 |
Market Value per share | 4 | 10.00 |
Shares outstanding (number of shares) | 40,000 | 100,000 |
Compute the following ratios for both firms to make the appropriate decision.
- EPS
- Price/Earnings (P/E)
- DPS
- Net income/Total assets
- Net income/ Stockholders' equity
Answer fast and just mention the final results - no need for details answer
Return on Assets Tamla Earnings per Share (EPS) Tamla Return on Assets Amaron Dividends per Share (DPS) Tamla return on stockholders' equity for Tamla Price/Earnings (P/E) Tamla return on stockholders' equity for Amaron Amaron has better profitability ratios (True, False) Price/Earnings (P/E) Amaron Earnings per Share (EPS) Amaron
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