Below is selected financial data regarding current assets and current liabilities for two companie Company B has recently come out of bankruptcy. (S in millions, except per share data) Company A Company B Net Sales $ 27,638 $ 79,919 Net Income 10,217 11,872 Total Liabilities 5,767 99,078 Stockholders' equity, beginning 44,218 14,424 Stockholders' equity, ending 59,194 115.05 18,392 Stock price, ending 165.99 Dividends, per share 0.00 5.50 Average shares outstanding 2,863 million 955 million Required: 1. Calculate and compare the return on equity for the two companies. 2. Calculate and compare the earnings per share for the two companies.

Below is selected financial data regarding current assets and current liabilities for two companie Company B has recently come out of bankruptcy. (S in millions, except per share data) Company A Company B Net Sales $ 27,638 $ 79,919 Net Income 10,217 11,872 Total Liabilities 5,767 99,078 Stockholders' equity, beginning 44,218 14,424 Stockholders' equity, ending 59,194 115.05 18,392 Stock price, ending 165.99 Dividends, per share 0.00 5.50 Average shares outstanding 2,863 million 955 million Required: 1. Calculate and compare the return on equity for the two companies. 2. Calculate and compare the earnings per share for the two companies.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 31P

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