First pic question:
(1) Compute the payout ratio for each company. (Do not leave any answer field blank. Enter 0 for amounts. Round answers to 1 decimal places, e.g. 15.2%.)
(2) Which pays out a higher percentage of its earnings?
Second pic question:
(1) What conclusions concerning the companies profitability can be drawn from these ratios? Which company relies more on debt to boost its return to common shareholders?
*DATA FOR BOTH QUESTIONS ARE BELOW*
Your answer is correct. Based on the information in these financial statements, compute the 2018 return on common stockholders' equity, debt to assets ratio, and return on assets for each company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45). Round answers to 1 decimal places, e.g. 15.2%.) Columbia Sportswear Company Under Armour, Inc. Return on common stockholders' equity 16.5 % -2.3 % Debt to assets 28.6 % 52.5 % Return on assets 12 % - 1.1 % Compute the payout ratio for each company. (Do not leave any answer field blank. Enter Ofor amounts. Round answers to 1 decimal places, e.g. 15.2%.) Columbia Sportswear Company Under Armour, Inc. Payout ratio % % Which pays out a higher percentage of its earnings? pays out a higher percentage of its earnings. Under Armour, Inc. Columbia Sportswear Company Columbia Sportswear Company Under Armour, Inc. Return on common stockholders' equity 16.5% (2.3%) Debt to assets 28.6% 52.5% Return on assets 12.0% (1.1%) What conclusions concerning the companies' profitability can be drawn from these ratios? Which company relies more on debt to boost its return to common shareholders? Your answer is correct. Based on the information in these financial statements, compute the 2018 return on common stockholders' equity, debt to assets ratio, and return on assets for each company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45). Round answers to 1 decimal places, e.g. 15.2%.) Columbia Sportswear Company Under Armour, Inc. Return on common stockholders' equity 16.5 % -2.3 % Debt to assets 28.6 % 52.5 % Return on assets 12 % - 1.1 % Compute the payout ratio for each company. (Do not leave any answer field blank. Enter Ofor amounts. Round answers to 1 decimal places, e.g. 15.2%.) Columbia Sportswear Company Under Armour, Inc. Payout ratio % % Which pays out a higher percentage of its earnings? pays out a higher percentage of its earnings. Under Armour, Inc. Columbia Sportswear Company Columbia Sportswear Company Under Armour, Inc. Return on common stockholders' equity 16.5% (2.3%) Debt to assets 28.6% 52.5% Return on assets 12.0% (1.1%) What conclusions concerning the companies' profitability can be drawn from these ratios? Which company relies more on debt to boost its return to common shareholders
