Answered step by step
Verified Expert Solution
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
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 $12.00 $7.14 $4.91 $0.65 $0.42 $0.34 Market price per share Earnings per share Dividends per share Net income (in thousands) Shareholders' equity (in thousands) $0.165 $0.140 $0.149 $21,224 $15,450 $12,282 $ 178,691 $ 158,247 $147,279 Calculate Ostuni's pricelearnings ratio from 2018 through 2020. Round answers to 1 decimal place, e.g. 15.2.) 2020 2019 2018 Pricelearnings ratio Commenton whether the ratio'strend over this period reflects a company with higher growth potential oronethat has achieved maturity The trend reflects that thecompany has eTextbook 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 ratiostell us about Ostuni Ltd.? Thecompany is paying out a percentage of their earnings as dividends. eTextbook and Media Calculate Ostuni's return on equity ratio for 2019 and 2020. Note that Ostuni's articles of incorporation authorizeonly common shares. {Round answers to 1 decimal place, e.g. 15.2%. 2020 2019 Return on equity ratio Commenton 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, eTextbook and Media
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started