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Q#1 Company A Company B Company C Operating income Good 10 10 10 Average 7 7 7 Poor 5 5 5 Financial structure Current liabilities
Q#1
Company A Company B Company C
Operating income
Good 10 10 10
Average 7 7 7
Poor 5 5 5
Financial structure
Current liabilities 0 1 2
Non Current Liabilities 4 3 0
Share holder equity 6 6 8
Tax rate 50 %
Interest rate 10%
Required
- Find out net income of each company in each economics environment
- Find out return on equity of each company in each economics environment which firm have best financial structure in each economics environment
Q#2 ABC Corporation has 1.3 million common shares outstanding and total earnings of $2.4 million. The firm paid dividends totaling $550,000.
- What were the dividends per share paid by ABC?
- What was ABCs dividend payout ratio?
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