FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Chapter 2, Problem 2.4BE
To determine
Earnings per share (EPS): The amount of net income available to each shareholder per common share outstanding is referred to as earnings per share (EPS).
Use the following formula to compute EPS:
To compute: EPS of L Brands
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Suppose the following information (in millions of dollars) is available for Limited Brands for a recent year: sales revenue $8,640; net income $230; preferred dividend $0; and weighted-average
shares outstanding 383 million.
Compute the earnings per share for Limited Brands. (Round answer to 2 decimal places, e.g. 15.25.)
Earnings per share
Selected financial data for DC Menswear is provided as follows:
($ in millions except share data)
Sales
$14,826
Net income
$1,190
Stockholders’ equity, beginning
$3,800
Stockholders’ equity, ending
$4,200
Average shares outstanding (in millions)
$620
Dividends per share
$1.20
Stock price, ending
$23.13
Required:
Calculate the following ratios for DC Menswear. (Enter "Net income" and "Average stockholders' equity" answers in millions (i.e., 5,000,000 should be entered as 5). Round your answers to 2 decimal places.)
DC Menswear
Return on Equity
÷
=
Return on equity
Dividend Yield
Dividend yield
Price-Earnings Ratio
Price-Earnings Ratio
Below is select information from DC United Company's income statement. At the
end of the current year, the weighted average number of common shares
outstanding was 133,000. Select Data from Income Statement, End of Current Year
Sales $ 952,000 Cost of goods sold 802, 000 Operating expenses 82,000 Tax
expense 16,000 Required: Calculate EPS for DC United.
Chapter 2 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 2 - What is meant by the term operating cycle?Ch. 2 - Define current assets. What basis is used for...Ch. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - What do these classes of ratios measure? (a)...Ch. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - (a) What is the primary objective of financial...Ch. 2 - Merle Hawkins, the president of Pathway Company,...Ch. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - What is the economic entity assumption? Give an...Ch. 2 - Prob. 20QCh. 2 - The following are the major balance sheet...Ch. 2 - Prob. 2.3BECh. 2 - Prob. 2.4BECh. 2 - Prob. 2.5BECh. 2 - Prob. 2.7BECh. 2 - Prob. 2.8BECh. 2 - Prob. 2.9BECh. 2 - Here are some qualitative characteristics of...Ch. 2 - Prob. 2.11BECh. 2 - Prob. 2.1bDIECh. 2 - Prob. 2.2DIECh. 2 - Prob. 2.1ECh. 2 - The major balance sheet classifications are listed...Ch. 2 - Nordstrom, Inc. operates department stores in...Ch. 2 - Prob. 2.13ECh. 2 - Prob. 2.8APCh. 2 - Prob. 2.1EYCTCh. 2 - Prob. 2.3EYCTCh. 2 - Prob. 2.8EYCTCh. 2 - ETHICS CASE At one time, Boeing closed a giant...Ch. 2 - In what ways does the format of a statement of...Ch. 2 - Prob. 2.2IECh. 2 - Prob. 2.3IECh. 2 - Prob. 2.5IE
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