![]() They're customizable and designed to help you study and learn more effectively. If our total assets turnover is 2.75 2.75 2.75 then our sales will be : Sales of Kable’s Karate Supply will be equal to 18, 700, 000 \18,700,000 18, 700, 000 in case of the TAT is 2.75 2.75 2.75. An increase in leverage will generally result in a higher ROE, but if. Increases in return on sales or total asset turnover will unequivocally result in higher ROE. (a) Earnings per share = Net profit/ Total number of shares Net profit = (retained earning + cash dividends) Net profit = 639,000 + 60,000 Net profit = 699,000 Earnings per share = Net profit/ Total number of shares Earnings per share = 699000/710000 Earnings per share = $0.9845 Earnings per share = $0.98/share Dividends per share = Cash dividends/ Total number of shares Dividends per share = 60000/710000 Dividends per share = 0.0845 Dividends per share = $0.08/share Book value per share = Ending total equity/ Total number of shares Book value per share = (7,340,000 /710,000) Book value per share = 10.34 Book value per share = $10.34/share (b) Market to Book ratio = Market price / Book price Market to Book ratio = 30.40/10.34 Market to Book ratio = 2.94 times Price to earnings ratio = Price / earnings per share Price to earnings ratio = 30.40/0.9845 Price to earnings ratio = 30.88 Price to earnings ratio = 30.88 times (c) Price to sales ratio = (price per share/ Sales per share) Sales per share = (Total Sales / Total current shares) Sales per share = (10,640,000 / 710,000) Sales per share = 14.9859 Sales per share = $14.99/share Price- Sales ratio = (Market price/ Sales per share) Price- Sales ratio = (30.40 / 14.99) Price- Sales ratio = 2.03 Price- Sales ratio = 2. Total Asset Turnover: study guides and answers on Quizlet Total Asset Turnover Discover free flashcards, games, and test prep activities designed to help you learn about Total Asset Turnover and other concepts. Study with Quizlet and memorize flashcards containing terms like profitability liquidity solvency efficiency valuation, time series analysis, cross-sectional analysis and more.
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