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Shown below is the liabilities and stockholders' equity section of the balance sheet for Martinez Company and Sandhill Company. Each has assets totaling $4,022,000 Martinez

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Shown below is the liabilities and stockholders' equity section of the balance sheet for Martinez Company and Sandhill Company. Each has assets totaling $4,022,000 Martinez Co. Current liabilities Long-term debt, 10% Common stock ($20 par) Retained earnings (Cash dividends, $232,000) $324,000 1,090,000 1,860,000 748,000 $4,022,000 SandhillCo. Current liabilities Common stock ($20 par) Retained earnings (Cash dividends, $334,000) $194,000 3,080,000 748,000 $4,022,000 For the year, each company has earned the same income before interest and taxes. Income before interest and taxes Interest expense Martinez Co. Sandhill Co. $1,180,000 $1,180,000 109,000 1,071.000 1.180,000 481,950 531,000 SS89050 $649,000 Income taxes (45%) Net Income At year end, the market price of Martinez's stock was $101 per share, and Sandhill's was $63.50. Assume balance sheet amounts are representative for the entire year (a) Calculate the return on total assets? (Round answers to 2 decimal places, eg. 16.85%) Return on total assets Martinez Company Sandhill Company Which company is more profitable in terms of return on total assets? (b) Calculate the return on common stock equity? (Round answers to 2 decimal places, e.g. 16.85%) Return on common stock equity Martinez Company Sandhill Company Which company is more profitable in terms of return on common stockholders' equity? (c) Calculate the Net Income per share. (Round answers to 2 decimal places, eg. $6.85) Net Income per share Martinez Company $ Sandhill Company $ Which company has the greater net income per share of stock? Neither company issued or reacquired shares during the year. (d 1) From the point of view of net income, is it advantageous to the stockholders of Martinez Co, to have the long-term debt outstanding? Net income per share Martinez Company $ Sandhill Company $ Which company has the greater net income per share of stock? Neither company issued or reacquired shares during the year. (d 1) From the point of view of net income, is it advantageous to the stockholders of Martinez Co. to have the long-term debt outstanding? le) What is the book value per share for each company? (Round answers to 2 decimal places, eg. $6.85.) Book value per share Martinez Company $ Sandhill Companys

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