Acc205 Principles of Accounting: P15-35 Draper Consulting Continuing Problem (Ratios)

Acc205 Principles of Accounting P15-35 Using ratios to evaluate a stock investment [20-25 min] This problem continues the Draper Consulting, Inc., situation from Problem 14-33 of Chapter 14. Requirement: 1. Using the results from Chapter 4, and knowing that the current market price of Draper's stock is $200 per share, calculate the following ratios for the company: a. Current ratio b. Debt ratio c. Debt to equity ratio d. Earnings per share e. P/E ratio f. Rate of return on total assets g. Rate of return on common stockholders' equity