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problem: The following data taken from a 1996 financial statement of Computronics Corporation and Digitek Corporation [all figures are in the $ millions except for share amounts. evaluate and contrast the financial performance of the two companies using financial ratios discussed.

All figures in millions

Computronix

Digitek

Key Assumptions

1996

1996

Dividend Payout

40.0%

20.0%

Number of Shares

200

100

 

 

 

Income Statement

1996

1996

Sales

$3,379.3

$4,537.0

EBIT

$317.6

$403.1

Interest Expense

$54.7

$4.8

Net Income

$153.7

$239.0

 

 

 

Balance Sheet

1996

1996

Average Assets

$2,457.9

$3,459.7

Average Shareholders' Equity

$1,113.3

$2,347.3

 

 

 

Market Data

 

 

Market Price / Share at Beginning of Year

$15.00

$38.00

Market Price / Share at End of Year

$12.00

$40.00

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916276

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