The shareholder equity ratio indicates the amount of the organization’s benefits are supported by equity shares. The lower the ratio result, the more obligation an organization has used to pay for its benefits. The figures used to ascertain the ratio are taken from the organization monetary record. To compute: The stockholder ratio.

Question

Problem #8. Profitability Ratios Gonzales is analyzing the earnings performance of the Bobadilla Transport Corporation. He has gathered the following data from Bobadilla's financial statements and from a report of the closing market prices of shares: Profit for 2019 Preference dividends declared during 2019 Ordinary dividends declared Dec. 31, 2019 Number of Bobadilla ordinary shares outstanding: P743,000 60,000 620,000 Jan. 1, 2019 Dec. 31, 2019 1,100,000 shs. 1,300,000 shs. Market price per ordinary share on Dec. 31, 2019 P15 Calculate the following ratios relating to the Bobadilla share: 1. Basic earnings per ordinary share 2. Price-earnings ratio 3. Dividend yield on ordinary share

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Question

Chapter 12, Problem 99.5C

To determine

The shareholder equity ratio indicates the amount of the organization’s benefits are supported by equity shares. The lower the ratio result, the more obligation an organization has used to pay for its benefits. The figures used to ascertain the ratio are taken from the organization monetary record.

To compute:

The stockholder ratio.

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