Question

OCloud Corportation's suite of software products and services provides secure and scalable solutions for global companies. The following is an extract from the company's 2020 and 2019 comparative income statements and statement of financial position. The market price of OCloud's common shares was $41.12 and $38.20 on June 30, 2020, and June 30, 2019, respectively. OCloud declared dividends per common share of $0.476 and $0.412 for 2020 and 2019, respectively.

OCLOUD CORPORTATION

Years Ended June 30, 2020 and 2019

(in thousands)

Comparative Income Statement	2020	2019
Total revenues	$2,276,557	$1,828,767
Total cost of revenues	766,850	569,174
Total operating expenses	1,169,419	874,972
Net Income	$1,009,546	$300,221
Statement of Financial Position	2020	2019
Total assets	$7,490,691	$5,175,412
Total liabilities	3,960,177	3,762,299
Common share capital	1,436,263	821,380
Total shareholders' equity	$3,530,514	$1,413,113
Weighted average number of common shares outstanding	253,195	242,375

Calculate the return on shareholders' equity for OCloud in 2020. Note that OCloud's articles of incorporation authorize only common shares. The average return for the shares listed on the Toronto Stock Exchange in a comparable period was 19.8%. (Round answer to 1 decimal place)

Return on shareholders' equity:___%

Calculate earnings per share for the years 2020 and 2019 (Round answers to 2 decimal places)

2020 2019

Earnings per share $ per share $ per share

Calculate the dividend payout ratio and the dividend yield for 2020 and 2019. (Round answers to 1 decimal place)

2020 2019

Dividend payout ratio % %

Dividend yield % %

Answer 1