Other sets by this creator
Suppose that you are considering investing in one of two companies, each in the same industry. The most recent income statements for each company and other relevant information are as follows:
*For both McGregor and Fasnacht, the preferred dividend is $1 per share.
Note: Round answers to two decimal places.
Compute the following for each company: (a) earnings per share, (b) dividend yield, (c) dividend payout ratio, (d) price-earnings ratio, (e) return on assets, and (f ) return on stockholders’ equity.
CONCEPTUAL CONNECTION In which of the two companies would you invest? Explain.
Novi Discount Brokers hired the Wall Street Search Service to locate candidates for the position of manager, investment bonds. The agency’s fee is 25% of the first year’s salary if one of its candidates is hired. Novi also ran several advertisements at a total cost of $816.40. Novi interviewed three people:
|David Gold||Nancy Cooper||Henry Little|
|Applied through agency||Answered advertisement||Applied through agency|
|Travel costs:$148.75||Travel costs: $216.40||Travel costs:$171.80|
Novi hired Henry Little at an annual salary of $74,760. Novi paid his moving expenses of$419.20 and his real estate broker’s fee of 7% to sell his $149,000 home. What was the recruiting cost?