Paul Sabin organized Sabin Electronics $10$ years ago to produce and sell several electronic devices. Due to a cash You decide next to assess the company's profitability. Compute the following for both this year and last year:

a$.$ The gross margin percentage.

b$.$ The net profit margin percentage.

c$.$ The return on total assets. $($Total assets at the beginning of last year were $$2,670,000.)$

d$.$ The return on equity. $($Stockholders$\text{'}$ equity at the beginning of last year was $$1,715,000.)$

e$.$ Is the company's financial leverage positive or negative?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

You decide first to assess the company's stock market performance. For both this year and last year, compute:

a$.$ The earnings per share. There has been no change in common stock over the last two years.

Note: Round your answers to $2$ decimal places.

b$.$ The dividend yield ratio. The company's stock is currently selling for $$60$ per share; last year it sold for $$50$ per share.

Note: Do not round intermediate calculations. Round your percentage answers to $1$ decimal place.

c$.$ The dividend payout ratio.

Note: Do not round intermediate calculations. Round your percentage answers to $1$ decimal place.

d$.$ The price$-$earnings ratio. $($Assume that the industry norm for the price$-$earnings ratio is $7.)$

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.

e$.$ The book value per share of common stock.

Note: Round your answers to $2$ decimal places. You decide next to assess the company's profitability. Compute the following for both this year and last year:

a$.$ The gross margin percentage.

b$.$ The net profit margin percentage.

c$.$ The return on total assets. $($Total assets at the beginning of last year were $$2,670,000.)$

d$.$ The return on equity. $($Stockholders$\text{'}$ equity at the beginning of last year was $$1,715,000.)$

e$.$ Is the company's financial leverage positive or negative?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

You decide next to assess the company's profitability. Compute the following for both this year and last year:

a$.$ The gross margin percentage.

Note: Round your percentage answers to $1$ decimal place.

b$.$ The net profit margin percentage.

Note: Round your percentage answers to $1$ decimal place.

c$.$ The return on total assets. $($Total assets at the beginning of last year were $$2,670,000.)$

Note: Round your percentage answers to $1$ decimal place.

d$.$ The return on equity. $($Stockholders$\text{'}$ equity at the beginning of last year was $$1,715,000.)$

Note: Round your percentage answers to $1$ decimal place.

e$.$ Is the company's financial leverage positive or negative?

shortage, the company is requesting a $$600,000$ long$-$term loan from Gulfport State Bank. The company's financial

statements for the two most recent years follow:

During the past year, the company introduced several new products and raised the selling prices on a number of

existing products to improve its profit margin. The company also hired a new sales manager, who expanded sales into

several new territories. Sales terms are $2/10,$ n$/30.$ All sales are on account.

Assume Paul Sabin has asked you to assess his company's profitability and stock market performance.

Required:

You decide first to assess the company's stock market performance. For both this year and last year, compute:

a$.$ The earnings per share. There has been no change in common stock over the last two years.

b$.$ The dividend yield ratio. The company's stock is currently selling for $$60$ per share; last year it sold for $$50$ per

share.

c$.$ The dividend payout ratio.

d$.$ The price$-$earnings ratio. $($Assume that the industry norm for the price$-$earnings ratio is $7)$

e$.$ The book value per share of common stock.

You decide next to assess the company's profitability. Compute the following for both this year and last year:

a$.$ The gross margin percentage.

b$.$ The net profit margin percentage.

c$.$ The return on total assets. $($Total assets at the beginning of last year were $$2,670,000.)$

d$.$ The return on equity. $($Stockholders$\text{'}$ equity at the beginning of last year was $$1,715,000.)$

e$.$ Is the company's financial leverage positive or negative?