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Sandhill Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a
Sandhill Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through the retention of earnings. A stock or a cash dividend has never been declared. Presented below is a brief financial summary of Sandhill Inc. operations.
($000 omitted) | ||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||
Sales revenue | $20,060 | $16,110 | $13,930 | $5,990 | $4,020 | |||||
Net income | 2,430 | 1,400 | 800 | 700 | 250 | |||||
Average total assets | 21,810 | 19,020 | 11,560 | 4,250 | 3,010 | |||||
Current assets | 7,930 | 6,030 | 3,010 | 1,190 | 1,000 | |||||
Working capital | 3,620 | 3,230 | 1,210 | 500 | 400 | |||||
Common shares: | ||||||||||
Number of shares outstanding (000) | 2,000 | 2,000 | 2,000 | 20 | 20 | |||||
Average market price | $10 | $7 | $4 |
Compute the return on assets, profit margin on sales, earnings per share, price-earnings ratio, and current ratio for each of the 5 years for Sandhill Inc.
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