The Following Information Applies to Acorn Construction Company (ACC) Required:
Compute the Following Ratios for ACC for 2014 and

The following information applies to Acorn Construction Company (ACC):
Information on the number of shares outstanding is provided below: $$\begin{array} { | l | l | } \hline \text { Avg. \# of shares outstanding } 2013 & 38,000 \\\hline \text { Avg. \# of shares outstanding } 2014 & 33,000 \\\hline\end{array}$$
Required:
Compute the following ratios for ACC for 2014 and 2013:
(a) Number of times interest is earned
(b) Earnings per share
(c) Price-earnings ratio (Market prices: 2014 $17.50 per share, 2013 $15.00 per share)
(d) Return on equity
(e) Net margin.

Correct Answer:

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