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: WIPER, INC. Condensed Balance Sheets December 31, 2011, 2010, 2009 (in millions) 2010 $ 980 $
2009 662
2,413
2,112
1,547
3,090
3,092
2,209
562
883
639
1,521
1,080
744
1,007
1,129
826
3,090
3,092
2,209
WIPER, INC Selected Income Statement and Other Data For the year Ended December 31, 2011 and 2010 (in millions) 2011 Income statement data: Sales $3,050 Operating income (EBIT) 296 Interest expense 84 Net income 192 Other data: Average number of common shares outstanding 41.3 Total dividends paid $ 50
Required: (a) Calculate return on investment, based on net income and average total assets, for 2011 and 2010.(Round your intermediate calculations to two decimal places. Round your answers to 1 decimal place. Omit the "%" sign in your response.) 2011 2010
Return on Investment
(b) Calculate return on equity for 2011 and 2010. (Round your answers to 1 decimal place. Omit the "%" sign in your response.) 2011 Return on equity % 2010 %
(c) Calculate working capital and the current ratio for each of the past three years. (Round your answers to 1 decimal place. Enter working capital in millions of dollars. Omit the "$" sign in your response.) 2011 Working capital Current ratio $ 2010 $ 2009 $
(d) Calculate earnings per share for 2011 and 2010. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) 2011 Earnings per share $ 2010 $
(e) If Wiper's stock had a price/earnings ratio of 13 at the end of 2011, what was the market price of the stock? (Round your intermediate calculations to two decimal places. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Market price $
(f) Calculate the cash dividend per share for 2011 and the dividend yield based on the market price calculated in requirement (e). (Round your intermediate calculations to two decimal places. Round your answers to 2 decimal places. Omit the "$" and "%" signs in your response.)
$ %
(g) Calculate the dividend payout ratio for 2011. (Round your intermediate calculations to two decimal places. Round your answer to the nearest whole percent. Omit the "%" sign in your response.) Dividend payout ratio %
(h) Assume that accounts receivable at December 31, 2011, totaled $309 million. Calculate the number of days' sales in receivables at that date. Use 365 days a year. (Do not round intermediate calculations and round final answer to nearest whole number.)
Number of days (i) Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2011 and 2010. (Round your answers to 1 decimal place. Omit the "%" sign in your response.) 2011 Debt ratio Debt/equity ratio % % 2010 % %
(j) Calculate the times interest earned factor for 2011 and 2010. (Round your answers to 1 decimal place.) 2011 Times interest earned 2010