The Following Financial Data Are Available for Schultz Company Compute the Following Ratios:
1

question 121

Essay

The following financial data are available for Schultz Company: $$\begin{array} { | l | r | } \hline \text { Operating profit } & \$ 236,000 \\\hline \text { Profit } & 196,300 \\\hline \text { Earnings per share } & 2.45 \\\hline \text { Dividends paid per share } & 1.25 \\\hline \text { Average common shareholders' equity } & 985,000 \\\hline \text { Average total assets } & 1,870,000 \\\hline \text { Current market price per share } & 24.50 \\\hline \text { Book value per share } & 12.30 \\\hline\end{array}$$ Compute the following ratios:
1. Return on equity
2. Price/earnings ratio
3. Dividend yield

---

Definitions:

Chronological Age

The actual age of an individual measured in years from the date of birth.

Mental Age

A concept used in intelligence testing that represents the intellectual age level an individual is functioning at, as compared to the average intellectual performance of individuals in their chronological age.

IQ

An abbreviation for Intelligence Quotient, a measure of a person's cognitive abilities and potential relative to their age group.

Divergent Thinking

A way of solving problems and generating creative ideas by exploring many possible solutions.