Outstanding shares = Shares issued – Treasury shares Earnings Per share = Net income / Average number of shares outstanding Free cash flow = cash flow from operating activities – dividends – capital expenditures Capital acquisition ratio = cf from op / cash paid for property, plant and equipment Treasure Stock Reissued Cash XX (shares*value) Treasure stock XX (shares* o. cost) Capital in excess of par value XX Sale and issuance of c. stock Cash XX (shares*value) Common sock XX (shares* par value) Capital in excess of par value XX DIVIDENDS No entry for date of record Declaration date RE XX Dividend payable XX Date of payment Dividend payable XX Cash XX Dividend Yield Ratio = Dividend per share / Market price per share Stock splits change the par value per share, but total par value is unchanged PROFIBILITY Return on equity = net income / average owners’ equity Return on assets = net income + interest expense (net of tax) / average total assets Financial leverage = return on equity – return on assets
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This note was uploaded on 04/22/2008 for the course ACCT 2251 taught by Professor Lilysieux during the Winter '07 term at CSU East Bay.