Additionally, there are horizontal and vertical analyses for Riordan’s balance sheet and income statement. Profitability Ratios Profitability Ratios | | 2011 | 2010 | | | | | | | | Asset Turnover | | | | | | (Net Sales/Avg. Total Assets) | 1.62 | | 66,608,660 ÷ (47,409,137 + 34,825,498 = 82,234,635 ÷ 2) 41,117,317.5 = 1.6199 or 1.62 | | | | | 1.66 | 56,534,254 ÷(34,825,498 + 33,1004,430 = 67,299,928 ÷2) 33,964,964 = 1.6644 or 1.66 | | | | | | | Profit Margin | | | 4.97% | | 3,310,662 ÷66,608,660 = 0.497 or 4.97 | (Net Income/Net Sales) | | | 4.30% | 2,430,872 ÷ 56,534,254 = 0.429 or 4.30 | | | | | | | Return on Assets | | | 8.05% | | 3,310,662 ÷ (47,409,137 + 34,825,498 = 82,234,635 ÷ 2) 41,117,317.5 = 0.805 or 8.05 | (Net Income/Avg. Total Assets) | | 7.17% | 2,430,872 ÷ (34,825,498 + 33,1004,430 = 67,299,928 ÷2) 33,964,964 = 0.071569986 or 7.17 | | | | | | | Return on Common Stockholder's Equity | | | 10.44% | | 3,310,662 ÷ (33,477,982 + 29,946,92 ÷ 2) 31,712,487 = 0.104396164 or 10.44 | (Net Income/Avg. Common Stockholder's Equity) | | | | 8.46% | 2,430,872 ÷ (29,946,92 + 27,517,328 ÷ 2) 28,732,160 = 0.84604568 or 8.46 | Solvency Ratios A formulation used to measure a company's financial risk by determining how much of the company's assets have been financed by debt.
The characteristics of the corporate form of business. 2. About the term "cash dividend". 3. Which accounts have debit or credit balances.
Find the real return on the following investments: Stock Nominal Return Inflation A 10% 3% B 15% 8% C -5% 2% ? Find the real return, nominal after-tax return, and real after-tax return on the following: Stock Nominal Return Inflation Tax Rate X 13.5% 5.0% 15% Y 8.7% 4.7% 25% Z 5.2% 2.5% 28% How are industry-operating differences reflected in a firm’s financial statements? week 6 Assignment
Why would a company issue stock? 33. Why is issuing stocks a popular way for companies to earn money? 34. What is the rule of thumb in regards to return and risk?
Debt to assets ratio $1,202,134 (total debt) / $1,404,726 (total assets) = 87.4% B.) ROA is a measure of profitability or effectiveness of resource usage calculated by expressing a company’s net income as a percentage of total assets. As for Sepracor, its ROA is 4.5%. This means that Sepracor created 4.5 cents of earnings from each dollar of assets. The ROE for Sepracor is 33.07%, which means that 33.07 cents of assets are created for each dollar that was originally invested.
What is the expected dividend yield and expected capital gains yield? Explain the difference in the required return estimates from the ValueLine (see question 1a) to the WSJ price data. The company’s return on common stock using the constant growth model is 7.72%. The expected dividend yield is [pic]. The expected capital gains yield is the difference of the total yield, 7.72%, and the dividend yield of 2.22%, which give us 5.5% for the
5. Why is the market capitalization different than the common stockholders’ equity? 6. Comment on the trend in the dividend payout. J.
Financial Comparison of the Kroger, Target, and Walmart Corporations Finance 300 MW December 2, 2013 Executive Summary Through the evaluation of financial information, gleaned from the publically available financial statements of the identified companies, a comparison is established by converting the data into financial ratios that provide a more accurate and clean side-by-side assessment of the group. These measurements are in turn used to judge which company provides the best investment potential. The Income Statement, Balance Sheet, and Cash Flow Statements from The Kroger Company (KR), Target Corporation (TGT), and Wal-Mart Stores Incorporated (WMT) for their fiscal years ending January or February 2011, 2012, and 2013 were
Dividends and dividend equivalent rights declared | | | 0 | | | | 0 | | | | (10,676 | ) | | | 0 | | | | (10,676 | ) | Repurchase of common stock | | | (46,976 | ) | | | 0 | | | | (22,950 | ) | | | 0 | | | | (22,950 | ) | Share-based compensation | | | 0 | | | | 2,253 | | | | 0 | | | | 0 | | | | 2,253 | | Common stock issued under stock plans, net of shares withheld for employee taxes | | | 6,981 | | | | (143 | ) | | | (444 | ) | | | 0 | | | | (587 | ) | Tax benefit from equity awards, including transfer pricing adjustments | | | 0 | | | | 1,232 | | | | 0 | | | | 0 | | | | 1,232 | | | | | | | | | | | | | | | | | | | | | | | Balances as of September 28, 2013 | | | 899,213 | | | $ | 19,764 | | | $ | 104,256 | | | $ | (471 | ) | | $ | 123,549 | | | | | | | | | | | | | | | | | | | | | |
Decrease Cash Increase Assets (c) Issued common stock to investors in exchange for cash Increase Cash Decrease in Stock Equity. (d) Paid an account payable in full. Decrease Cash Decrease Liability 10. What is the normal balance for each of these accounts? (a) Accounts Receivable.