and also what is the Supreme price earnings ratio at year en

and also what is the Supreme price earnings ratio at year end was

Help Required information The following information applies to the questions displayed below Shown below are selected data from the financial statements of Supreme Co. Dollar amounts are in millions (except fo the per share data) Income statement data: Net:sales Cost of goods sold Operating expenses Net income $1,116 $49e $410 s 33e Balance sheet data: Average total equity Average total assets $1,800 $3,400 Supreme reported earnings per share for the year of $5 and paid cash dividends of $2 per share. At year-end, the Wa Street Journal listed Supreme\'s capital stock as trading at $82 per share Supreme\'s return on equity was:

Solution

Supreme\'s return on equity = Net Income / Average Total Equity = 330 / 1,800 * 100 = 18.33 %

Supreme\'s price earnings ratio at year end = Market price per share / Earnings per Share = $ 82 / $ 5 = 16.4 times