The Following Financial Data Are Available for Murphy Company Required:
Calculate Each of the Following Ratios

question 34

Essay

The following financial data are available for Murphy Company: $$\begin{array} { l r } \text { Operating income } & \$ 236,500 \\\text { Net income } & 196,300 \\\text { Earnings per share } & 2.45 \\\text { Dividends paid per share } & 1.25 \\\text { Average common stockholders' equity } & 985,000 \\\text { Average total assets } & 1,870,000 \\\text { Current market price per share } & 24.50 \\\text { Book value per share } & 12.30\end{array}$$ Required:
Calculate each of the following ratios. Round your answers to two decimal places.
A. Return on equity
B. Price/earnings ratio
C. Dividend yield

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and internal conflicts.

Displacement

In psychology, a defense mechanism where an individual redirects emotional impulses from a real object to a safer substitute target.

Sublimation

A defense mechanism where socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, thereby avoiding facing uncomfortable emotions.