Question
Matheny Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a
Matheny 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 Matheny Inc. operations.
($000 omitted) | ||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||
Sales revenue | $20,600 | $18,090 | $15,520 | $6,040 | $4,280 | |||||
Net income | 2,860 | 1,530 | 900 | 760 | 310 | |||||
Average total assets | 23,900 | 19,450 | 12,170 | 4,810 | 3,950 | |||||
Current assets | 9,030 | 7,300 | 3,720 | 1,890 | 1,360 | |||||
Working capital | 4,270 | 3,380 | 1,790 | 520 | 430 | |||||
Common shares: | ||||||||||
Number of shares outstanding (000) | 3,000 | 3,000 | 3,000 | 30 | 30 | |||||
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 Matheny Inc. (Round answers to 2 decimal places, e.g. 2.25.)
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