Problem:
Maggie's Skunk Removal Corp.'s 2012 income statement listed net sales of $12.9 million, EBIT of $6.0 million, net income available to common stockholders of $3.6 million, and common stock dividends of $1.6 million. The 2012 year-end balance sheet listed total assets of $52.9 million and common stockholders' equity of $21.4 million with 2.0 million shares outstanding.
Required:
Question 1: Calculate the profit margin.
Question 2: Calculate the basic earnings power.
Question 3: Calculate the return on assets.
Question 4: Calculate the return on equity.
Question 5: Calculate the dividend payout.
Note: Show all workings.