Questions based on Tootsie Roll Industries' and Hershey Company's 2010 to 2011 financial statements.
The stockholders' equity section of Tootsie Roll Industries' balance sheet is shown in the Consolidated Statement of Financial Position. (Note that Tootsie Roll has two classes of common stock. To answer the following questions, add the two classes of stock together.)
a.) What is the par or stated value per share of Tootsie Roll's common stock? (Round answer to 4 decimal places, e.g. 1.2531.)
b.)What percentage of Tootsie Roll's authorized common stock was issued at December 31, 2011? (Round to 0 decimal places, e.g. 17%)
c.) How many shares of common stock were outstanding at December 31, 2010, and at December 31, 2011? (Enter the answers in thousands.)
d.) Calculate the payout ratio, earnings per share, and return on common stockholders' equity for 2011. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal places, e.g. 12.5%.)
| Payout ratio |
|
 |
% |
| Earnings per share |
|
$ |
|
| Return on common stockholders' equity |
|
|
% |
Hershey Company and Tootsie Roll
Based on the information in these financial statements, compute the 2011 return on common stockholders' equity, debt to assets ratio, and return on assets for each company. (Round answers to 1 decimal places, e.g. 15.2%.)
| Hershey Company |
|
|
Tootsie Roll |
|
Return on common
stockholders' equity |
|
|
% |
|
|
% |
| Debt to assets |
|
|
% |
|
|
% |
| Return on assets |
|
|
% |
|
|
% |
Compute the payout ratio for each company. Which pays out a higher percentage of its earnings? (Round answers to 1 decimal places, e.g. 15.2%.)
Which pays out a higher percentage of its earnings?