Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 Current assets $ 685 $ 917 $ 773 Other assets 2,417 1,924 1,723 Total assets $ 3,102 $ 2,841 $ 2,496 Current liabilities $ 581 $ 816 $ 714 Long-term liabilities 1,510 995 860 Stockholders’ equity 1,011 1,030 922 Total liabilities and stockholders' equity $ 3,102 $ 2,841 $ 2,496 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) Income statement data: 2020 2019 Sales $ 3,054 $ 2,917 Operating income 300 314 Interest expense 88 69 Net income 203 198 Other data: Average number of common shares outstanding 41.7 47.1 Total dividends paid $ 54.0 $ 52.7 1. If Wiper's stock had a price/earnings ratio of 11 at the end of 2020, what was the market price of the stock? Market Price = ? Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in question 1. Cash dividends Per Share = ? Dividend Yield = ? 3. Calculate the dividend payout ratio for 2020, Assume that accounts receivable at December 31, 2020, totaled $313 million. Calculate the number of days' sales in receivables at that date. Dividend Payout Ratio = ? Number Of Days' Sales = ?

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP

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Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:

WIPER INC.
Condensed Balance Sheets
December 31, 2020, 2019, 2018
(in millions)
	2020	2019	2018
Current assets	$	685		$	917	$	773
Other assets		2,417			1,924		1,723
Total assets	$	3,102		$	2,841	$	2,496
Current liabilities	$	581		$	816	$	714
Long-term liabilities		1,510			995		860
Stockholders’ equity		1,011			1,030		922
Total liabilities and stockholders' equity	$	3,102		$	2,841	$	2,496

WIPER INC.
Selected Income Statement and Other Data
For the year Ended December 31, 2020 and 2019
(in millions)

Income statement data:		2020		2019
Sales	$	3,054	$	2,917
Operating income		300		314
Interest expense		88		69
Net income		203		198
Other data:
Average number of common shares outstanding		41.7		47.1
Total dividends paid	$	54.0	$	52.7

1. If Wiper's stock had a price/earnings ratio of 11 at the end of 2020, what was the market price of the stock?

Market Price = ?

Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in question 1.

Cash dividends Per Share = ?

Dividend Yield = ?

3. Calculate the dividend payout ratio for 2020, Assume that accounts receivable at December 31, 2020, totaled $313 million. Calculate the number of days' sales in receivables at that date.

Dividend Payout Ratio = ?

Number Of Days' Sales = ?

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