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You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a

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You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performance to its major competitors. The company's financial statements for the last two years are as follows Comparative Balance Sheet Assets Current assets: 960,800 1,260,ee 300,000 2,780,eee 1,880,eee 2,480, eee 180,800 Marketable securities Accounts receivable, net Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: 3,98e,eee 240,e08 7,800,00e 9,300,8ee $ 17,1ee, eee $14, Current liabilities 3,988,ee 3,600,eee 2,768,8ee 3,0e0,eee 5 Note payable, ie% Total liabilities Stockholders equity: 7,800,eee 1,88e,eee 9,600,000 $17,188,e0 Common stock, $78 par value Retained earnings 7,800,0ee 1,328,eee 9,120,e0e Total stockholders' equity Total liabilities and stockholders' equity Comparative Income Statement and Reconciliation This Year 15,75e,eee $ 12,488,800 9,900,eee Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense 12,600,eee 1,59e,eee 560,000 360,800 , 288,00e 1,560,8ee 1,028, e80 300,000 720 , Income taxes (3ex) Net income Commen dividends 848,e00 368.008 252.00a Total liabilities and stockholders' equity $ 17,100,eee $14,888,e00 Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (38%) Net income s 15,75e,eee 12,488,8ee 9,9ee,8ee 12,688,eee 3,150,80e 1,59e,eee 1,56e,eee 360,800 1,560,80e 1,e2e,eee 3ee,eee Net income retained Beginning retained earnings Ending retained earnings 360,800 840,000 368,880 488,800 1,32e,eee 1,8,eee 216,800 584,800 252,000 252,8ee 1,868,00e 1,328,eee $ $ To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 1.2 30 days 60 days 9.5% e. 65 1e You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end of this year is $72 per share and that at the end of last year it was $40. For both this year and last year, compute: (Round your "Percentage" answers t 1 decimal rlace and other intermediate and final answers to 2 decimal places.) 2. Average sale perioc Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 60 days 9.5% e.65 5.7 18 2. You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end of this year is $72 per share and that at the end of last year it was $40. For both this year and last year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places.) a. The earnings per share. b. The dividend yield ratio. c. The dividend payout ratio d. The price-earnings ratio. e. The book value per share of common stock. a. The b. The dividend yield ratio c. The di d. The pr e. The book value per share of common stock

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