Question

In: Accounting

The following financial information (in millions except for per share amounts) is for two major corporations...

The following financial information (in millions except for per share amounts) is for two major corporations for the three fiscal years ended December 31 as follows:

Canadian Pacific Railway Limited 2017 2016 2015
Weighted average number of common shares 145.9 149.6 159.7
Profit $2,405 $1,599 $1,352
Dividends $319 $274 $221
Market price per share (December 31) $229.66 $191.56 $176.73
Canadian National Railway Company 2017 2016 2015
Weighted average number of common shares 753.6 776.0 800.7
Profit $5,484 $3,640 $3,538
Dividends $1,239 $1,159 $996
Market price per share (December 31) $103.65 $90.36 $77.35


Neither company has preferred shares issued.

(a1)

Calculate earnings per share and the price-earnings and dividend payout ratios for each company for 2017, 2016, and 2015. (Round earnings per share and price-earnings ratio answers to 2 decimal places, e.g. 52.76. Round payout ratio answers to 3 decimal places, e.g. 5.276.)

Canadian Pacific Railway Limited
Ratio 2017 2016 2015
1. Earnings per share $ $ $
2. Price-earnings ratio times times times
3. Payout ratio
Canadian National Railway Company
Ratio 2017 2016 2015
1. Earnings per share $ $ $
2. Price-earnings ratio times times times
3. Payout ratio

Solutions

Expert Solution

Answer
Particulars Formula Canadian Pacific Railway Limited Canadian National Railway Company
2017 2016 2015 2017 2016 2015
Earnings per share (Net Income / No. of Common stock) $2,405 /145.9 $1,599/149.6 $1,352/159.7 $5,484/753.6 $3,640/776.0 $3,538/800.7
$16.48 $ 10.69 $ 8.46 $7.28 $ 4.69 $4.42
price-earnings Market Value per share / Earnings per share (EPS) $229.66/$16.48 $191.56/$ 10.69 $176.73/$ 8.46 $103.65/$7.28 $90.36/$ 4.69 $77.35/$4.42
(Times) 13.93 17.92 20.89 14.24 19.27 17.5
Dividend payout ratio Dividend per share/Earning per share $319/$16.48 $274/$ 10.69 $221/$ 8.46 $1,239/$7.28 $1,159/$ 4.69 $996/$4.42
$ 19.357 $              25.631 $            26.123 $        170.192 $       247.121 $      225.340
Please Like !!!!

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Amounts are in thousands of dollars (except number of shares and price per share):    Kiwi...
Amounts are in thousands of dollars (except number of shares and price per share):    Kiwi Fruit Company Balance Sheet   Cash and equivalents $ 570   Operating assets 650   Property, plant, and equipment 2,700   Other assets 110   Total assets $ 4,030   Current liabilities $ 920   Long-term debt 1,280   Other liabilities 120   Total liabilities $ 2,320   Paid in capital $ 340   Retained earnings 1,370   Total equity $ 1,710   Total liabilities and equity $ 4,030      Kiwi Fruit Company Income Statement   Net sales...
Amounts are in thousands of dollars (except number of shares and price per share):    Kiwi...
Amounts are in thousands of dollars (except number of shares and price per share):    Kiwi Fruit Company Balance Sheet   Cash and equivalents $ 570   Operating assets 650   Property, plant, and equipment 2,700   Other assets 110   Total assets $ 4,030   Current liabilities $ 920   Long-term debt 1,280   Other liabilities 120   Total liabilities $ 2,320   Paid in capital $ 340   Retained earnings 1,370   Total equity $ 1,710   Total liabilities and equity $ 4,030      Kiwi Fruit Company Income Statement   Net sales...
Income Statement for Fiscal Years Endings (in Millions, except per share amounts) Report Date 06/30/2019 06/30/2018...
Income Statement for Fiscal Years Endings (in Millions, except per share amounts) Report Date 06/30/2019 06/30/2018 06/30/2017 Net sales $67,684 $66,832 $65,058 Cost of products sold 34,768 34,268 32,535 Gross profit $32,916 $32,564 $32,523 Selling, general & administrative expense 19,084 18,853 18,568 Goodwill & indefinite lived intangible asset impairment charges 8,345 0.00 0.00 Operating income $5,487 $13,711 $13,955 Interest expense 509 506 465 Interest income 220 247 171 Other non-operating income (expense), net 871 -126 -404 Earnings from continuing operations...
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit...
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit Company Balance Sheet Cash and equivalents $ 580 Operating assets 680 Property, plant, and equipment 2,700 Other assets 125 Total assets $ 4,085 Current liabilities $ 920 Long-term debt 1,275 Other liabilities 135 Total liabilities $ 2,330 Paid in capital $ 355 Retained earnings 1,400 Total equity $ 1,755 Total liabilities and equity $ 4,085 Kiwi Fruit Company Income Statement Net sales $ 9,500...
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit...
Amounts are in thousands of dollars (except number of shares and price per share): Kiwi Fruit Company Balance Sheet Cash and equivalents $ 460 Operating assets 700 Property, plant, and equipment 2,900 Other assets 135 Total assets $ 4,195 Current liabilities $ 920 Long-term debt 1,345 Other liabilities 145 Total liabilities $ 2,410 Paid in capital $ 365 Retained earnings 1,420 Total equity $ 1,785 Total liabilities and equity $ 4,195 Kiwi Fruit Company Income Statement Net sales $ 7,900...
Amounts are in thousands of dollars (except number of shares and price per share: Kiwi Fruit...
Amounts are in thousands of dollars (except number of shares and price per share: Kiwi Fruit Company Balance Sheet   Cash and equivalents $570   Operating assets 650   Property, plant, and equipment 2,700   Other assets 110   Total assets $4,030   Current liabilities 920   Long-term debt 1,280   Other liabilities 120   Total liabilities $2,320   Paid in capital $340   Retained earnings 1,370   Total equity $1,710   Total liabilities and equity $4,030 Kiwi Fruit Company Income Statement   Net sales 7,800   Cost of goods sold -5,900   Gross profit 1,900...
Royal Corp’s financial information (in millions, except for Dividends) for Problems 2 and 3:                           &nbsp
Royal Corp’s financial information (in millions, except for Dividends) for Problems 2 and 3:                                                          2019                2018 Accounts Payable                                            $ 7,000           $ 6,780 Accounts Receivable                                           5,000               4,685 Additional Paid-in Capital                                  4,000               4,000 Cash                                                                    8,577               5,654 Common Stock                                                   3,107               3,107           Cost of Goods Sold                                        48,464           47,594 Depreciation                                                        1,315               1,244           Dividends per share                                              1.53                 1.28 Goodwill                                                         18,051           19,121 Interest Expense                                                  1,200               1,100 Inventory                                                            8,871          ...
Royal Corp’s financial information (in millions, except for Dividends) for Problems 2 and 3:                           &nbsp
Royal Corp’s financial information (in millions, except for Dividends) for Problems 2 and 3:                                                          2019                2018 Accounts Payable                                            $ 7,000           $ 6,780 Accounts Receivable                                           5,000               4,685 Additional Paid-in Capital                                  4,000               4,000 Cash                                                                    8,577               5,654 Common Stock                                                   3,107               3,107           Cost of Goods Sold                                        48,464           47,594 Depreciation                                                        1,315               1,244           Dividends per share                                              1.53                 1.28 Goodwill                                                         18,051           19,121 Interest Expense                                                  1,200               1,100 Inventory                                                            8,871          ...
Royal Corp’s financial information (in millions, except for Dividends) for Problems 2 and 3:                           &nbsp
Royal Corp’s financial information (in millions, except for Dividends) for Problems 2 and 3:                                                          2019                2018 Accounts Payable                                           $  7,000           $  6,780 Accounts Receivable                                          5,000               4,685 Additional Paid-in Capital                                  4,000               4,000 Cash                                                                    8,577               5,654 Common Stock                                                   3,107               3,107            Cost of Goods Sold                                           48,464             47,594 Depreciation                                                       1,315               1,244            Dividends per share                                              1.53                 1.28 Goodwill                                                           18,051             19,121 Interest Expense                                                 1,200               1,100 Inventory                                                            8,871               8,101 Long-Term Debt                                                     ?                      ?   Net Property, Plant & Equipment                    26,500             25,311 Notes Payable                                                     4,200               3,770 Research & Development Expense                    1,847               1,747 Retained Earnings                                                   ?                23,045            Revenue                                                            61,200             59,000 Selling General & Admin Expense                    3,200               3,024 Shares Outstanding                                             1,170               1,280 Treasury Stock                                                   (6,500)           (4,200)                                      Tax Rate = 30% Note that a reduction in Goodwill would be similar to Depreciation Expense in...
Cash Flow Flag INCOME STATEMENT Fiscal year ends in December. USD in millions except per share...
Cash Flow Flag INCOME STATEMENT Fiscal year ends in December. USD in millions except per share data. 2013-12 2014-12 2015-12 2016-12 2017-12 TTM Revenue 220156 200494 129925 110215 134674 154945 Cost of revenue 148882 136464 90788 78778 95114 110718 Gross profit 71274 64030 39137 31437 39560 44227 Costs and expenses Sales, General and administrative 4510 4494 4443 4684 4448 4358 Interest expense 201 307 731 Other operating expenses 30859 28334 29852 28712 25584 21980 Total costs and expenses 35369 32828...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT