Dividends yeild ratio Dividends per shareMarket price per share 2518 139 6

Dividends yeild ratio dividends per sharemarket price

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Dividends yeild ratio = Dividends per share/Market price per share = .25/18 = 1.39% 6. Earning per share = Net income + {Interest expense x (1-Tax rate)}/Average tatol assets = 3,900/48,120 = 8.10% 7. Return of common stockholder equity = Net income – Perferred dividends/Average common stockholder equity = 3,420/31,270 = 10.94% 8. Book value per share = Total stockholders equity – Preferred stock/ Number of common share outstanding = 32,880/800 = 41.10 per share Exercise 16-3Prepare a Flexible Budget [L01] Refer to the data for Weller Corporation Required: Compute the following financial data for short term creditors for this year: 9. Working capital 10. Current ratio 11. Acid-test ratio 12. Accounts receivable turnover (Assume that all sales are on account) 13. Average collection period 14. Inventory turnover 15. Average Sale Period Answers 9. Working Capital: Current assets 25,080 Current liabilities 10,400 Working capital 14,680 10. Current ratio = Current assets/ Current liabilities = 25,080/10,400 = 2.41 11. Acid-test ratio = Cash + Market securities + Current receivables/Current liabilities = 1,280 + 0 + 12,300/10400 = 1.30 12. AR Turnover = Sales on account/Average AR balance
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