Question

($ in millions except share data)	2021		2020
Sales	$	9,843	$	10,934
Net income	$	280	$	798
Stockholders' equity	$	1,710	$	2,290
Average Shares outstanding (in millions)		665		-
Dividends per share	$	0.38		-
Stock price	$	8.50		-

Choose numerator / Choose denominator
Return on equity
Dividend Yield
Earnings per share
price earning ratio

Answer 1

1)
	Average Stockholders Equity = (beginning Stockholders Equity + ending Stockholders Equity)/2
	= ( $2290+1710)/2
	= $ 2000
	Return On Stockholders Equity = Net Income / Average Stockholders Equity
	= $280/2000
	=14 %
2)	Dividend Yield Ratio = Dividend Per Share / Price Per Share
	= $0.38/8.5
	=4.47%
3)	Earning Per Shares = Net Income/ Average Number Of Shares Outstanding
	= $280/665
	= $ 0.42
4)	Price-earning ratio =Price Per Share/ Earning Per Share
	= $8.5/0.42
	= 20.24 times
	If not rounded off answer will be = 20.19
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