Vogelsberg Corporation Has Provided the Following Financial Data

question 160

Essay

Vogelsberg Corporation has provided the following financial data:
The company's net operating income in Year 2 was $62,308; its interest expense was $12,000; and its net income was $32,700. Dividends on common stock during Year 2 totaled $2,700. The market price of common stock at the end of Year 2 was $6.37 per share.Required:a. What is the company's times interest earned ratio for Year 2?b. What is the company's debt-to-equity ratio at the end of Year 2?c. What is the company's equity multiplier at the end of Year 2?d. What is thecompany's earnings per share for Year 2?e. What is the company's price-earnings ratio for Year 2?f. What is thecompany's dividend payout ratio for Year 2?g. What is thecompany's dividend yield ratio for Year 2?h. What is the company's book value per share at the end of Year 2?

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Definitions:

Variance Analysis

The process of investigating the difference between planned and actual numbers to understand deviations in financial performance.

Direct Materials Price Variance

The difference between the actual cost and the standard cost of materials used in production, indicating how effectively a company manages its material costs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the organization.

Variable Budget

A financial plan that adjusts for changes in the volume of activity, allowing for flexible cost controls depending on actual performance.