Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 61 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,350,500 $2,822,200 Net income 748,800 578,100 Dividends: On preferred stock (9,800) (9,800) On common stock (40,000) (40,000) Retained earnings, December 31 $4,049,500 $3,350,500 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $4,270,500 $3,934,620 Cost of merchandise sold 1,608,920 1,480,210 Gross profit $2,661,580 $2,454,410 Selling expenses $844,790 $1,058,190 Administrative expenses 719,640 621,470 Total operating expenses $1,564,430 $1,679,660 Income from operations $1,097,150 $774,750 Other revenue and…arrow_forwardRatio the liabilities to stockholders equity and times interest earned. following data were taken from the financial statement of Hunter Inc.for December 31st of two recent years: Current year accounts payable $434,000. Current maturity. 290,000 Serial bonds payable, 10% 1,190,000 Common stock,$1 par value 70,000 Paid- in capital in excess of par 700,000 Retained earnings 2,420,000 Previous year $127,000 290,000 1,480,000 90,000 700,000 1,920,000 The income before income tax expense was $518,000 and $453,000 for the camera in previous years respectively. A. Determine the ratio of liabilities to stockholders Equity at the end of each year. Round to one decimal place. Current year Previous year B. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Previous year C. The ratio of liabilities to stockholders Equity has _______and the number of times bond interest charges were earned has_______ from…arrow_forwardSelected financial data for DC Menswear is provided as follows: ($ in millions except share data) Sales $14,826 Net income $1,190 Stockholders’ equity, beginning $3,800 Stockholders’ equity, ending $4,200 Average shares outstanding (in millions) $620 Dividends per share $1.20 Stock price, ending $23.13 Required: Calculate the following ratios for DC Menswear. (Enter "Net income" and "Average stockholders' equity" answers in millions (i.e., 5,000,000 should be entered as 5). Round your answers to 2 decimal places.) DC Menswear Return on Equity ÷ = Return on equity Dividend Yield Dividend yield Price-Earnings Ratio Price-Earnings Ratioarrow_forward
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