Investor Analysis

Question 1

Degree of Financial Leverage

Answer 1

(Earnings Before Interest, Tax, Minority Share of Earnings, Equity Income and Nonrecurring Items) / (Earnings Before Tax, Minority Share of Earnings, Equity Income and Nonrecurring Items)

Question 2

Earnings Per Common Share

Answer 2

(Net Income - Preferred Dividends)/(Weighted Average Number of Common Shares Outstanding)

Question 3

Price to Earnings Ratio

Answer 3

Market Price Per Share/Fully Diluted Earnings Per Share

Question 4

Percentage of Earnings Retained

Answer 4

(Net Income - All Dividends)/Net Income

Question 5

Dividend Payout

Answer 5

Dividends Per Common Share/Diluted Earnings Per Share

Question 6

Dividend Yield

Answer 6

Dividends Per Common Share/Market Price Per Common Share

Question 7

Book Value Per Share

Answer 7

(Total Shareholders’ Equity - Preferred Stock Equity)/Number of Common Shares Outstanding

Question 8

Materiality of Options

Answer 8

Stock Options Outstanding/Number of Shares of Common Stock Outstanding

Question 9

Operating Cash Flow to Cash Dividends

Answer 9

Operating Cash Flow/Cash Dividends