Essay
The following condensed income statement is for Mason Inc.
Compute the following ratios for 2013,and provide a brief explanation after each ratio (round percentage computations to one decimal place and earnings per share to two decimal places):
(1)Gross margin ratio
(2)Profit margin ratio
(3)Return on assets
(4)Return on common shareholders' equity
(5)Earnings per share (assume weighted average shares outstanding totaled 2,900,000 shares)
(6)Market capitalization (assume 3,000,000 shares were issued and outstanding at December 31,2013,and the market price was $9.00 per share)
(7)Price-earnings ratio
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(1)Gross margin ratio 61.7% for every do...View Answer
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