Question
Deere & Co. manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere & Co.'s
Deere & Co. manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere & Co.'s credit division loans money to customers to finance the purchase of their farm and construction equipment. The following information is available for three recent years (in millions except per-share amounts): Net Income Year 3 $3,064.7 Year 2 $2,799.9 Year 1 $1,865 Preferred dividend Year 3 0 Year 2 0 Year 10 Interest expense Year 3 $782.8 Year 2 $759.4 Year 1 $811.4 Shares outstanding for computing earnings per share Year 3 $397 Year 2 $417 Year 1 $424 Cash dividend per share Year 3$1.79 Year 2 $1.52 Year 1 $1.16 Average total assets Year 3 $52,237 Year 2 $45,737 Year 1$42,400 average stockholder's equity Year 3 $6,821 Year 2 $6,545 Year 1$5,555 average stock price per share Year 3 $79.27 Year 2 $80.48 Year 1 $61.18 Calculate the following ratios for each year (Round percentages to one decimal place): Rate earned on total assets Rate earned on stockholders' equity Earnings per share Dividend yield Price-earnings ratio What is the ratio of average liabilities to average stockholders' equity for Year 3? Based on these data, evaluate Deere & Co.'s performance
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