In: Finance
Maggie’s Skunk Removal Corp.’s 2021 income statement listed net sales of $14.4 million, gross profit of $9.40 million, EBIT of $7.5 million, net income available to common stockholders of $5.1 million, and common stock dividends of $3.1 million. The 2021 year-end balance sheet listed total assets of $54.4 million and common stockholders' equity of $22.9 million with 2.0 million shares outstanding.
Calculate the return on assets. (Round your answer to 2 decimal places.)
Calculate the return on equity. (Round your answer to 2 decimal places.)
Calculate the dividend payout. (Round your answer to 2 decimal places.)
Part A:
ROA = Net Income / Assets
= $ 5.1 M / $ 54.4 M
= 0.09375 I.e 9.375%
Part B:
ROE = Net Income / Equity
= $ 5.1 M / $ 22.9 M
= 0.2227 I.e 22.27%
Part C:
Div payout = Div / earnings
= $ 3.1 M / $ 5.1 M
= 0.6078 I.e 60.78%