Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Evaluate the common stock of Build Right Incorporated as an investment. Utililze the four ratios that help determine if the business is generating enough net
Evaluate the common stock of Build Right Incorporated as an investment. Utililze the four ratios that help determine if the business is generating enough net income to reward the stockholders for the use of their money, use this information to determine whether the stock increased or decreased in attractiveness during the past year. Round all ratios to two decimal places EB(Click the icon to view the financial information.) re at n use DPS , i end pers are 8 Select te our a s used to evaluate common st k as an investment, select he comes on form a and then ca ulate each ra o r 6 and20s. P? Pnoe earnings, ROA= Return on assets, ROE-Return on equity. ROS Return on sales. Enter ratios as percentages rounded to two decimal places, ings erst- 6 Round all dollar amounts o two de mal places, X Ratio EPS DPS Dividend payout ROE 2016 Formula Net income/ Average number of common shares outstanding Dividends Average number of common shares outstanding 2015 DividendsNet income Net income / Average stockholders' equity Data Table 2016 2015 2014 Net income $ 98,000 113,000 S 124,000 5,000 40,000 45,000 750,000 820,000 850,000 116,000 123,000 130,000 Total dividends Common stockholders' equity at year-eed Number of shares of common stock outstanding at year- end Choose trom any list or enter any number in the in Check Answer Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started