Calculate profitability measures The following information was available for the year ended December 31, 2013: Sales ....................................... $200,000Net income ............................. 30,000Average total assets ................ 500,000Average total stockholders’equity .................................. 300,000Dividends per share ................ $ 1.20Earnings per share .................. 3.00Market price per shareat year-end .......................... 48.00 Required:a. Calculate margin, turnover, and ROI for the year ended December 31, 2013.b. Calculate ROE for the year ended December 31, 2013.c. Calculate the price/earnings ratio for 2013.d. Calculate the dividend payout ratio for 2013.e. Calculate the dividend yield for 2013.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculate profitability measures The following information was available for the year ended December 31, 2013:

Sales ....................................... $200,000
Net income ............................. 30,000
Average total assets ................ 500,000
Average total stockholders’
equity .................................. 300,000
Dividends per share ................ $ 1.20
Earnings per share .................. 3.00
Market price per share
at year-end .......................... 48.00

Required:
a. Calculate margin, turnover, and ROI for the year ended December 31, 2013.
b. Calculate ROE for the year ended December 31, 2013.
c. Calculate the price/earnings ratio for 2013.
d. Calculate the dividend payout ratio for 2013.
e. Calculate the dividend yield for 2013.

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