Question
Jaedan Industries has the following account balances as of December 31, 2010 (Found on pages 64-65 of the text). The firms dividend payout ratio is
Jaedan Industries has the following account balances as of December 31, 2010 (Found on pages 64-65 of the text). The firms dividend payout ratio is 25% and the tax rate is 34%. The firms stock price on December 31, 2009, was $42.89 and on December 31, 2010, it was $56.82. Construct an income statement, balance sheet, statement of retained earnings, and statement of cash flows for 2010. Also, determine the firms free cash flow and calculate the liquidity, activity, debt, profitability, and market ratios for Jaedan industries. Perform a DuPont analysis and compare the firm to the industry ratios (see last table in this sequence). Evaluate the financial strengths and weaknesses Jaedan Industries may have.
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