This company paid dividends of $3.15 per share during the year. The market price of the company's shares at Dec 31 was $63 per share. Assets at the beginning of the year totalled $1,100,000 and shareholders' equity totalled $725,000. The balance of accounts receivable at the beginning of the year was $150,000. The balance in inventory at the beginning of the year was $250,000.

Calculate:

Price-earnings ratio

Return on total assets

Return on common shareholders' equity

Was the financial leverage positive or negative for the year? Explain.

AAR Company Balance Sheet December 31 marketable 160.000 300,000 Accounts receivable, net Inventory Prepaid expenses Total current assets Noncurrent assets Plant & equipment not 490,000 310.000 $1.300.000 No pay them 200 000 Noncurrents Bonds eyeble Shareholde equity Common shares S5 Reted earnings Tohareholders equity Tots who 51300.000 MR Company Income Statement For the Year Ended December 31 Idollars in thousands COO Cross maro 330.000 Operating expens 200.000 0000 45.000 SI5.000