FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The financial statements of Friendly Fashions include the following selected data (in millions):
($ in millions) 2021 2020
Sales $ 10,043 $ 11,134
Net income $ 312 $ 818
Stockholders’ equity $ 1,850 $ 2,310
Average shares outstanding (in millions) 675 –
Dividends per share $ 0.31 –
Stock price $ 6.20 –
Required:
1. Calculate the return on equity in 2021.
2. Calculate the dividend yield in 2021.
3. Calculate earnings per share in 2021.
4. Calculate the price-earnings ratio in 2021.
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