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: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 3,060,000 $ 1,050,000 $ 1,290,000 0 3,400,000 300,000 2,160,000 2,400,000 240,000 220,000 7,750,000 6,370,000 9,700,000 9,140,000 $17,450,000 $ 4,400,000 3,720,000 $15,510,000 $ 3,160,000 3,120,000 8,120,000 6,280,000 7,000,000 7,000,000 2,330,000 2,230,000 9,330,000 9,230,000 $17,450,000 $15,510,000 Lydex Company 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 (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings This Year $ 15,950,000 Last Year $ 14,480,000 12,760,000 10,860,000 3,190,000 3,620,000 1,918,000 1,640,000 1,272,000 1,980,000 372,000 312,000 900,000 1,668,000 270,000 500,400 630,000 1,167,600 530,000 583,800 100,000 583,800 1,646,200 2,230,000 $ 2,330,000 $ 2,230,000 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 2.3 1.2 Average collection period 32 days Average sale period 60 days Return on assets 8.7% Debt-to-equity ratio 0.7 Times interest earned ratio 5.9 Price-earnings ratio 10 Return on assets Debt-to-equity ratio 8.7% 0.7 Times interest earned ratio Price-earnings ratio 5.9 10 2. You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end o $112 per share and that at the end of last year it was $80. For both this year and last year, compute: (Round your "Pe 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 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 This Year di di % % Last Year % %