The following information is available for Allotrope Corporation. (a) Compute earnings per share for 2010 and 2009
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The following information is available for Allotrope Corporation.
(a) Compute earnings per share for 2010 and 2009 for Allotrope, and comment on the change. Allotrope's primary competitor, Triatomic Corporation, had earnings per share of $1 per share in 2010. Comment on the difference in the ratios of the two companies.
(b) Compute the current ratio and debt to total assets ratio for each year, and comment on the changes.
(c) Compute free cash flow for each year, and comment on thechanges.
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Related Book For
Accounting Tools For Business Decision Making
ISBN: 9780470377857
3rd Edition
Authors: Paul D. Kimmel
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