Formulate the price-earnings ratio

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Question: Profitability Analysis Albion Inc. provided the following information for its most recent year of operation. The tax rate is 40 percent.

2012_Albion Inc.png

Required: 1. Compute the following:

(a) return on sales,

(b) return on assets,

(c) return on stockholders' equity,

(d) earnings per share,

(e) price-earnings ratio,

(f) dividend yield, and

(g) dividend payout ratio.

2. Conceptual Connection: If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain.

Reference no: EM131698624

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