MNF Corporation Gathered the Following Data at the End of the Accounting

question 23

Short Answer

MNF Corporation gathered the following data at the end of the accounting period,December 31,2009:
$\begin{array}{lrl}\text { Net income } & \$ 60,000 \\\text { Net sales revenue } & 1,200,000 \\\text { Interest expense } & 25,000 \\\text { Total liabilities } & 200,000 \\\text { Average stockholders' equity }(50,000 \text { shares } & 300,000 \\\text { outstanding) } & \\\text { Dividends declared and paid during } 2009 & 22,500 \\\text { Market price per share of stock at year end } & 9 \\\text { Average income tax rate } &40\% \\\text { Requirements } &\end{array}$ Part 1:
Calculate each of the following ratios:
A.Profit margin
B.Return on equity
C.Earnings per share
D.Dividend yield ratio
E.Price/earnings ratio
F.Return on assets
G.Financial leverage percentage
Part 2:
Interpret the financial leverage percentage.

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Definitions:

Chromosome Number

The total number of chromosomes in the nucleus of a cell, which varies among different organisms and is characteristic of each species.

Meiosis I

The first division in the meiosis process, where a single cell divides into two cells containing half the original number of chromosomes, contributing to genetic diversity.

Reduction Division

Another term for Meiosis I, the first division in meiosis where the chromosome number is halved from diploid to haploid.

Autonomic Reflex

An involuntary response mediated by the autonomic nervous system to maintain homeostasis.