Question
Riverbed Inc. has the following selected financial data: 2023 2022 Net income $718,000 $684,000 Total assets 5,140,000 4,537,000 Preferred shares, 6%, cumulative 610,000 610,000 Common
Riverbed Inc. has the following selected financial data:
2023 2022
Net income $718,000 $684,000
Total assets 5,140,000 4,537,000
Preferred shares, 6%,
cumulative 610,000 610,000
Common shares 323,000 323,000
Retained earnings 2,787,000 2,206,000
Accumulated other comprehensive income 139,000 125,500
Total shareholders’ equity 3,859,000 3,264,500
Cash dividends paid in the year 137,000 180,900
Market price of common shares $97.72 $63.12
Weighted average number of common shares 83,000 83,000
There were no preferred dividends in arrears.
(a) Calculate the following ratios for 2023:
(1) Rate of return on common shareholders’ equity
(2) Payout ratio
(3) Price earnings ratio enter a number of times rounded to 2 decimal places times
(4) Book value $enter a dollar amount rounded to 2 decimal places
(5) Rate of return on total assets enter percentages rounded to 2 decimal places %
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