# Acc205 Principles of Accounting: P15-35 Using the results from Chapter 4, and knowing that

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

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

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