Evaluate the common stock of Build Right Incorporated as an investment. Utilize

Question

Evaluate the common stock of Build Right Incorporated as an investment. Utilize the four ratios that help determine if the generating enough net income to reward the stockholders for the use of their money; use this information to determine whether the stock increased or decreased in attractiveness during the past year. Round all ratios to two decimal places. EE (Click the icon to view the financial information.) Select the four ratios used to evaluate common stock as an investment, select the corresponding formulas, and then calculate each ratio for 2016 and 2015. (Abbreviations used: DPS Dividends per share, EPS Earnings per share, P/E Price/earnings, ROA Return on assets, ROE-Return on equity, ROS-Retum on sales. Enter ratios as percentages rounded to two decimal places, X.XX%, Round all dollar amounts to two decimal places, X.XX.) Ratio Formula 2016 2015

Explanation / Answer

Only three ratios are possible from the data provided :

Ratio Formula 2016 2015 EPS NP / outstanding shares 98000/(116000+123000)/2=0.82 113000/(123000+130000)/2 = 0.89 DPS Dividend/outstanding shares 35000/116000=0.3 40000/123000=0.33 ROE NP / Shareholder's equity 98000/(750000+820000)/2 = 0.12 113000/(820000+850000)/2 = 0.14

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