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The following information was available for the year ended December 31, 2016: Sales $ 460,000 Net...

The following information was available for the year ended December 31, 2016:

Sales $ 460,000
Net income 66,140
Average total assets 760,000
Average total stockholders' equity 365,000
Dividends per share 1.33
Earnings per share 3.00
Market price per share at year-end 27.60

a. Calculate margin, turnover, and ROI for the year ended December 31, 2016. (Round your intermediate calculations and final answers to 2 decimal places.)

b. Calculate ROE for the year ended December 31, 2016. (Round your answer to 2 decimal places.)

c. Calculate the price/earnings ratio for 2016. (Round your answer to 2 decimal places.)

d. Calculate the dividend payout ratio for 2016. (Round your answer to 2 decimal places.)

e. Calculate the dividend yield for 2016. (Round your answer to 2 decimal places.)

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Answer #1
Answer

1
Margin = Net income / Sales 14.38% 66140/460000
Turnover = Sales / Average total assets 0.61 460000/760000
ROI = Margin * Turnover 8.70% 14.38%*0.61
2
ROE = Net income / Average total stockholders’ equity 18.12% 66140/365000
3
Price/Earning ratio = Market price per share / Earnings per share 9.2 27.60/3
4
Dividend payout ratio = Dividends per share / Earnings per share 44.33% 1.33/3
5
Dividend yield = Dividends per share / Market price per share 4.82% 1.33/27.6
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