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Evaluate the common stock of TomCat Incorporated as an investment. Utilize the four ratios that help determine whether a business is generating enough net income
Evaluate the common stock of TomCat Incorporated as an investment. Utilize the four ratios that help determine whether a business is generating enough net income to reward the stockholders for the use of their money; use this information to determine whether the attractiveness of the stock increased or decreased during the past year. Round all ratios to two decimal places. (Click the icon to view the financial information.) Select the four ratios used to evaluate common stock as an investment, select the corresponding formulas, and then calculate each ratio for 2018 and 2017. (Abbreviations used: DPS = Dividends per share, EPS = Earnings per share, P/E = Pricelearnings, ROA = Return on assets, ROE = Return on equity, ROS = Return on sales. Enter ratios as percentages rounded to two decimal places, X.XX%. Round all dollar amounts to two decimal places, X.XX.) Ratio Formula 2018 2017 % % % % - :...... Data table 2018 2017 2016 Net income $ 168,000 $ 150,000 $ 142,000 Total dividends 30,500 25,500 35,000 790,000 690,000 Common stockholders' equity at year-end Number of shares of common stock outstanding at year-end 750,000 74,000 80,000 69,000 Print Done
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