Response to the following problem:
Spaling Preston EBIT (Earnings before Interest and Taxes) 300,000 190,000
Interest Expense 10,000 15,000
Net income 200,000 100,000
Dividend payout ratio 35% 40%
Retention ratio 65% 60%
Sales 3,000,000 2,000,000
Average assets during the year 2,500,000 1,500,000
Average shareholders equity during the year 1,800,000 1,000,000
Market price per share Beginning of year 20 18
End of year 15 20
Number of shares outstanding 150,000 50,000
Ratios:
Total Shareholder Return
Return on Sales
Return on Assets
Return on Equity
Asset Turnover Times
Interest Earned Debt Ratio (Youll need to calculate the average debt during the year.)