WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 Current assets $ 685 $ 917 $ 773 Other assets 2,417 1,924 1,723 Total assets $ 3,102 $ 2,841 $ 2,496 Current liabilities $ 581 $ 816 $ 714 Long-term liabilities 1,510 995 860 Stockholders’ equity 1,011 1,030 922 Total liabilities and stockholders' equity $ 3,102 $ 2,841 $ 2,496 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales $ 3,054 $ 2,917 Operating income 300 314 Interest expense 88 69 Net income 203 198 Other data: Average number of common shares outstanding 41.7 47.1 Total dividends paid $ 54.0 $ 52.7 If Wiper's stock had a price/earnings ratio of 11 at the end of 2020, what was the market price of the stock? Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. Calculate the dividend payout ratio for 2020.
WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 Current assets $ 685 $ 917 $ 773 Other assets 2,417 1,924 1,723 Total assets $ 3,102 $ 2,841 $ 2,496 Current liabilities $ 581 $ 816 $ 714 Long-term liabilities 1,510 995 860 Stockholders’ equity 1,011 1,030 922 Total liabilities and stockholders' equity $ 3,102 $ 2,841 $ 2,496 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales $ 3,054 $ 2,917 Operating income 300 314 Interest expense 88 69 Net income 203 198 Other data: Average number of common shares outstanding 41.7 47.1 Total dividends paid $ 54.0 $ 52.7 If Wiper's stock had a price/earnings ratio of 11 at the end of 2020, what was the market price of the stock? Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. Calculate the dividend payout ratio for 2020.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
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i need assistance calculating based on the following data:
WIPER INC. | |||||||||
Condensed Balance Sheets | |||||||||
December 31, 2020, 2019, 2018 | |||||||||
(in millions) | |||||||||
2020 | 2019 | 2018 | |||||||
Current assets | $ | 685 | $ | 917 | $ | 773 | |||
Other assets | 2,417 | 1,924 | 1,723 | ||||||
Total assets | $ | 3,102 | $ | 2,841 | $ | 2,496 | |||
Current liabilities | $ | 581 | $ | 816 | $ | 714 | |||
Long-term liabilities | 1,510 | 995 | 860 | ||||||
1,011 | 1,030 | 922 | |||||||
Total liabilities and stockholders' equity | $ | 3,102 | $ | 2,841 | $ | 2,496 | |||
WIPER INC. | ||||||
Selected Income Statement and Other Data | ||||||
For the year Ended December 31, 2020 and 2019 | ||||||
(in millions) | ||||||
2020 | 2019 | |||||
Income statement data: | ||||||
Sales | $ | 3,054 | $ | 2,917 | ||
Operating income | 300 | 314 | ||||
Interest expense | 88 | 69 | ||||
Net income | 203 | 198 | ||||
Other data: | ||||||
Average number of common shares outstanding | 41.7 | 47.1 | ||||
Total dividends paid | $ | 54.0 | $ | 52.7 | ||
- If Wiper's stock had a price/earnings ratio of 11 at the end of 2020, what was the market price of the stock?
- Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.
- Calculate the dividend payout ratio for 2020.
- Assume that
accounts receivable at December 31, 2020, totaled $313 million. Calculate the number of days' sales in receivables at that date.
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