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    Financial ratios solving

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    Solve for the following ratios
    See Attachment.

    EPS
    Price Earnings
    Payout ratio
    Times Interest Earned

    2.

    Inventory turnover
    Receivables turnover

    ROE
    ROA

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    https://brainmass.com/business/accounting/financial-ratios-solving-170735

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    Solution Preview

    1.

    EPS = Net Income/Weighted Average common shares
    47900/34000 = 1.40(rounded)

    Price Earnings = Price per share/EPS
    16/1.40 = 11.4(rounded)

    Payout ratio = Dividend / Net income
    32000/47900 = 0.668 or 67%(rounded)

    Times Interest Earned ...

    Solution Summary

    The solution gives the formula and solves the following ratios: payout ratio, EPS, Times Interest earned, recivables turnover, Inventory turnover, ROE, ROA, return on equity, return on assets, total assets from ROA, net income from ROE.

    $2.19

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