A Company's Calendar-Year Financial Data Are Shown Below

question 37

Essay

A company's calendar-year financial data are shown below.The company had total assets of $339,000 and total equity of $144,400 for the prior year.No additional shares of common stock were issued during the year.The December 31 market price per share is $49.50.Cash dividends of $19,500 were paid during the year.Calculate the following ratios for the company:
(a)profit margin ratio
(b)gross margin ratio
(c)return on total assets
(d)return on common stockholders' equity
(e)book value per common share
(f)basic earnings per share
(g)price earnings ratio
(h)dividend yield.

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Definitions:

Lump-sum Contract

A type of contract in which all work is agreed to be completed for a single, fixed price, regardless of the actual costs incurred.

Recognized Up Front

The practice of recording or acknowledging revenue or expenses immediately at the time of a transaction.

Franchisor

A business entity that grants the license to a third party for the conducting of a business under the franchisor's marks.

Franchise Revenue

Income generated from the operation of a franchised business model, typically including fees and royalties paid by franchisees.