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Grouper Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a
Grouper Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through the retention of earnings. A stock or a cash dividend has never been declared. Presented below is a brief financial summary of Grouper Inc. operations. ($000 omitted) 2021 2020 2019 2018 2017 Sales revenue $19,810 $16,000 $13,970 $6,000 $3,990 Net income 2,410 1,410 800 700 250 Average total assets 21,780 19,040 11,620 4,170 3,030 Current assets 7,920 6,040 2,970 1,220 990 Working capital 3,580 3,200 1,190 500 400 Common shares: Number of shares outstanding (000) 2,000 2,000 2,000 20 20 Average market price $9 $6 $4 - (b) Compute the return on assets, profit margin on sales, earnings per share, price-earnings ratio, and current ratio for each of the 5 years for Grouper Inc. (Round answers to 2 decimal places, eg. 2.25 or 2.25%.) 2021 2020 2019 Return on assets % % Profit margin on sales % % $ GA $ $ Earnings per share Price-earnings ratio times times Current ratio times times 2019 2018 2017 % % % % % % $ GA $ $ times times times times
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