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Hi, I need help with parts h-m. How do I get the values for h-m?? I have the formulas but Ihave no idea how to
Hi, I need help with parts h-m.
How do I get the values for h-m??
I have the formulas but Ihave no idea how to get those values.
For ex: How do we calculate market price per share? earnings per share? Given what we have...
Thank you!
I would appreciate if you can break the formulas down even further so I know what numbers to use (h-m)
17-2 Financial Ratios The annual reports of Milano Italian clothing chain, included the following selected data (in millions, " is the European euro) 20X2 20x1 20x0 Annual amounts: Net income 29 Gross margin on sales 250 Cost of goods sold Operating expenses Income tax expense Dividends declared and paid End-of-year amounts: Long-term assets Long-term debt Current liabilities Cash Accounts receivable Merchandise inventory Paid-in capital I 205 Retained income 110 During each of the three years, 10 million shares of common stock were outstanding. Assume that all sales were on account and that the applicable market prices per share of stock were 92 for 20X1 and 118 for 20X2. 1. Compute each of the following for each of the last two years, 20X1 and 20X2: a) Rate of return on sales b) Rate of return on stockholders' equity c) Current ratio d) Ratio of total debt to stockholders' equity e) Ratio of current debt to stockholders' equity f) Gross profit rate g) Average collection period for accounts receivable h) P/E ratio i) Dividend-payout percentage j) Dividend yield k) Total debt to equity 1) Earnings per share m)Price earnings (a). rate of ritum on sules = NI Izoxli 6.3 a no (Gross murg.+ (OGS) 20x2: 6.29 no 16) rate of return on equity = NI 1 (puid- in cap. + Ret. Eur) 20x1:49.2% 120x2: 59.2% Tco) current ratio = (cash taccts receivt merch) current liab. 2001: 3.0 no 20x2: 9.422 Ied) ratio of total debt . hoxli 42.4 % 20x2' 46.1% long term debt + current liab). (paid in cup & ret, ear) mkt . pnce earnings = 2oxi: 14.15 p 20x2: 12:42 price of common shane eanings per shune 0 Rans of curent det to SUE - current limb (pald-in cap & ret. eur) 20X1: 18.9899 2012: 21,495% fan profil mito gross marin gross margin +COGS 2001: 37.856% 2082 : 34,10% 9) Ava o yd hr gut reaiv= /2) (um of ruiv.) (Gross marg. + COGS) 20x1! 13.99 days 2002: 10.27 days EP/E ratio & market price per Shame Earnings pershane (EPS). 20x2: + nouge Dividend -panont 20x1: 25% 20x2: 41% dividend pershane earning per shane = J) Dividend yield 2001: 20% 20x2 : 3% dividend per mat price shane of comm.stk. equityf k) Total debt to 20X1: 42.429. 20x2: 46.100 total liab total S.E. L) Eamings pershane = 120x 6 .50 120x2: 9.50 NI # of Shanes mtstanding Step by Step Solution
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