Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ostuni Limited is a Niagara-on-the-Lake, Ontario-based winery producing blended, premium, and ultrapremium wines, which are sold globally. The company has a strong distribution network in

image text in transcribedimage text in transcribed

Ostuni Limited is a Niagara-on-the-Lake, Ontario-based winery producing blended, premium, and ultrapremium wines, which are sold globally. The company has a strong distribution network in Canada through independent retail locations. The following information has been extracted from the company's annual report. 2020 2019 2018 Market price per share $10.80 $6.89 $5.05 Earnings per share $0.59 $0.44 $0.33 Dividends per share $0.159 $0.140 $0.133 Net income in thousands) $21,511 $15,514 $12,142 Shareholders' equity (in thousands) $178,731 $158,807 $146,612 Calculate Ostuni's price/earnings ratio from 2018 through 2020. (Round answers to 1 decimal place, e.g. 15.2.) 2020 2019 2018 Price/earnings ratio Comment on whether the ratio's trend over this period reflects a company with higher growth potential or one that has achieved maturity. The trend reflects that the company has e Textbook and Media Calculate Ostuni's dividend payout ratio and dividend yield for 2018 through 2020. (Round answers to 1 decimal place, e.g. 15.2%.) 2020 2019 2018 % % % Dividend payout ratio Dividend yield % % % What do the results of these ratios tell us about Ostuni Ltd.? The company is paying out a percentage of their earnings as dividends. e Textbook and Media Calculate Ostuni's return on equity ratio for 2019 and 2020. Note that Ostuni's articles of incorporation authorize only common shares. 2020 2019 Return on equity ratio % % Comment on how effectively Ostuni's management has been able to use the equity of its shareholders to generate returns. The company is using its equity to generate returns efficiently in 2020 than in 2019. e Textbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

To find integral of sin(logx) .

Answered: 1 week ago