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Hello, I have the following:

Hello, I have the following:

Hello, I have the following:

Consolidated Balance Sheet  Dec 31, 2017, 2016 2015 (in millions)

                                            2017                       2016                       2015

Current Assets                     $734                      $ 959                     $ 813

Other Assets                        $2,421                   $ 1,928                  $ 1727

Total Assets                          $3,155                   $2,887                   $ 2,540

 

Current Liab.                        $585                       $ 838                   $ 731

Long Term Liab.                   $ 1,555                   $ 1,015                 $ 883

Stockhldrs Equity                 $ 1,015                   $1,034                  $ 926

Total Liab & S.E.                   $3,155                    $2,887                  $2,540

 

Selected Income Statement ending Dec 31, 2017 and 2016. in millions.

                                                       2017                                           2016

Income Statement Data:

    Sales                                         $3,058                                         $2,921

    Operating Income                    $   304                                          $  318

    Interest Expense                       $     92                                          $   73

    Net income                               $  215                                           $  210

Other Data:

    Avg # of comm. shares outstd.     42.1                                            47.5

    Total Dividends paid                  $ 58.0                                           $53.1

Questions are:

1. Return on Equity 2017 and 2016 (do not round immediate calculations, round to 1 decimal place.)

2. Calculate Earnings per share 2017 and 2016 

(Sorry but the answers below are incorrect per the homework software that we are using, I am not sure if there is something wrong with the homework software).

thanks

check_circleAnswer
Step 1

Return on equity (ROE):

 

This is the financial ratio that evaluates a company’s efficiency in utilizing the stockholders’ equity to generate the net income. So, ROE is a tool used in measuring the performance of a company.

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Step 2

Earnings per share (EPS):

 

The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS).

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Step 3

The return on equity for 2016 is 21.4%.

The return on equity for 2017 is 21%.

The earnings per share for 2016 is $4.42.

The earnings per share for 2017 is $5.11%.

 
manish jayant 07-Sep-2020

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