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could you pleaseeee help me with the equity question!! 2 Required information The following information applies to the questions displayed below! Summary Information from the
could you pleaseeee help me with the equity question!!
2 Required information The following information applies to the questions displayed below! Summary Information from the financial statements of two companies competing in the same industry follows: Kyan Company Barco Company Kyan Company Barco Company Data from the current year's income statement Sales $ 21.000 $ 33,000 Cost of goods sold 34,400 58,400 Interest expense 84,840 136,500 Income tax expense 5,300 7.000 Net Income 340.000 312,400 Basic earnings per share $ 485,540 $548, 100 Cash dividends per share Beginning-of-year balance sheet data $ 69,340 $92,300 Accounts receivable, net 82,800 113,000 Merchandise inventory 210,000 216,000 Total assets 123,400 126.000 Common stock, 35 par value $ 485,540 $548,100 Retained earnings Data from the current year-end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Liabilities Long-term notes payable Connon stock, 35 par value Retained earnings Total liabilities and equity $ 790,000 $ 890,200 595, 100 646,500 3,100 13,000 15,185 24,576 171,615 206,124 4.09 4.77 3.72 3.93 net $ 31,800 63,600 455,000 210,000 108,025 $ 56,200 107.400 372,500 216,000 90,452 2a. For both companies compute the profit margin ratio, (total asset turnover (return on total assets, and (d) return on equity Assuming that each company's stock can be purchased at $95 per share, compute their le price carings ratios and (dividend yields 2b. Identify which company's stock you would recommend as the better investment ences Complete this question by entering your answers in the tabs below. 2A Price Ear ZA DI Yield Reg 28 2A Prof Mar 2A Tot Asset 2A Ret on Tot 2A Reton Ratio Tum Assets Equity Ratio For both companies compute the return on equity (d) Return On Equity Company Numerator Denominator Not income Average total equity Barco 171,615 Kyan 206,124 Return On Equity Return On equity 70.7 707 Step by Step Solution
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