The following information was available tor the year ended December 31.2013: Cal
ID: 2499624 • Letter: T
Question
The following information was available tor the year ended December 31.2013: Calculate margin, turnover, and ROI lor the year ended December 31. 2013 (Do not round intermediate calculations and round your answers to 2 decimal places.) Calculate ROE for the year ended December 31. 2013 (Round your answer to 2 decimal places.) Calculate the pnce/eamings ratio for 2013 (Round your answer to 2 decimal places.) Calculate the dividend payout ratio for 2013 (Round your answer to 2 decimal places.) Calculate the dividend yield for 2013 (Round your answer to 2 decimal places.)Explanation / Answer
Answer no (a)
Net operating Margin ratio = Net Income / Sales *100 = 82820/580000 *100 = 14.27%
Asset Turnover ratio = Sales / average total assets = 580000/ 880000 =0.659 times
Return on Investment (ROI) = Net Income / average total assets * 100 = 82820/ 880000 *100 = 9.41%
Answer no. (b)
Return on equity (ROE) = Net Income / average total shareholder equity = 82820/ 396000 *100 = 20.91%
Answer no. (c)
Price earning ratio (PE ratio ) = Market price per share / Earning per share = 29.40/3 = 9.8
Answer no. (d)
Dividend payout ratio = dividend per share / earning per share * 100 = 1.39 / 3 *100 = 46.33%
Answer no. (e)
Dividend yield = Dividend per share / market price per share * 100% = 1.39 / 29.40 *100% =4.27%
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