Question
Tamarisk Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a
Tamarisk 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 Tamarisk Inc. operations.
($000 omitted) | ||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||
Sales revenue | $19,990 | $15,980 | $13,870 | $5,940 | $3,980 | |||||
Net income | 2,430 | 1,410 | 800 | 690 | 250 | |||||
Average total assets | 22,150 | 19,040 | 11,560 | 4,180 | 2,980 | |||||
Current assets | 8,070 | 6,010 | 3,000 | 1,190 | 1,010 | |||||
Working capital | 3,640 | 3,180 | 1,210 | 500 | 400 | |||||
Common shares: | ||||||||||
Number of shares outstanding (000) | 2,000 | 2,000 | 2,000 | 20 | 20 | |||||
Average market price | $8 | $7 | $4 |
(b) 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 Tamarisk Inc. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||
Return on assets | % | % | % | % | % | ||||||||||
Profit margin on sales | % | % | % | % | % | ||||||||||
Earnings per share | $ | $ | $ | $ | $ | ||||||||||
Price-earnings ratio | times | times | times | ||||||||||||
Current ratio | times | times | times | times | times |
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