Having finalised its accounts for the year ended 31 December 2020, Gloomy Ltd has decided to keep dividend per share the same as it was the previous year, despite the fact that both EPS (Earnings per Share) and year-end share price are lower in 2020 than they were in 2019. In calculating investment ratios, the company uses dividend cover (i.e. how many times EPS covers dividend) rather than the dividend payout ratio (i.e. expression of dividend as a percentage of EPS). The same number of shares were in issue in both years. Which of the following statements is correct? Both dividend yield and dividend cover will be higher in 2020 than in 2019. In 2020, dividend yield will be higher than in 2019 but dividend cover will be lower. In 2020, dividend yield will be lower than in 2019 but dividend cover will be higher. Both dividend yield and dividend cover will be lower in 2020 than in 2019.

Compute Measures for DuPont Disaggregation Analysis Use the information below for 2018 for 3M Company to answer the requirements. ($ millions) Sales Net income, consolidated Net income attributable to 3M shareholders Pretax interest expense Assets Total equity Equity attributable to 3M shareholders Net income consolidated S a. Compute return on equity (ROE) from the perspective of a 3M shareholder. Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE Numerator Denominator E Net income consolidated (adjusted) 2018 2017 $32,765 5,363 5,349 S 207 36,500 $37,987 9,848 11,622 9,796 11,563 S + Average total equity 5,349 $ b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. (Perform these computations from a consolidated perspective). Profit Margin (PM) Note: 1. Select the appropriate numerator and denominator used to…

- What are the firm’s current ratios for 2018 and 2019?

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