Find the firm''s free cash flow and calculate the liquidity

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Jaedan Industries has the following account balances as of December 31, 2010 (Found on page 64 & 65 of the text). The firm's dividend payout ratio is 25% and the tax rate is 34%. The firm's stock price on December 31, 2009, was $42.89 and on December 31, 2010, it was $56.82. Construct an income statement, balance sheet, statement of retained earnings, and statement of cash flows for 2010. Also, determine the firm's free cash flow and calculate the liquidity, activity, debt, profitability, and market ratios for Jaedan industries. Perform a DuPont analysis and compare the firm to the industry ratios (see last table in this sequence). Highlight any financial strengths and weaknesses Jaedan Industries may have.

Reference no: EM13215164

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