Question: Profitability Ratios The following information has been gathered for Malette Manufacturing:
Assume that the firm has no common stock equivalents. The tax rate is 34 percent.
Required: 1. Compute the return on assets.
2. Compute the return on common stockholders' equity.
3. Compute the earnings per share.
4. Compute the price-earnings ratio.
5. Compute the dividend yield.
6. Compute the dividend payout ratio.
Refer to the information for Kepler Company on the previous page.
Required: 1. Compute the percentage change for each item in the balance sheet and income statement.
2. Conceptual Connection: Comment on any significant trends.