Chapter 7 question 3
I’m studying for my Mathematics class and need an explanation.
In 2018, FedEx had total assets of $51.7 billion, an asset turnover ratio of 1.22 times, and a net profit margin of 8.7%.
a. What is FedEx’s return on assets?
b. Find FedEx’s ROE, given that 36.9% of the assets are financed with stockholders’ equity.
Find the EPS, P/E ratio, and dividend yield of a company that has 5 million shares of common stock outstanding (the shares trade in the market at $21.53),earns 8% after taxes on annual sales of $161 million, and has a dividend payout ratio of 40.68%.
At what rate would the company’s net earnings be growing if the stock had a PEG ratio of 1.62?