Merck, a major pharmaceutical, generated $7,808 million in net income for the year ended December 31, 2008.
Merck, a major pharmaceutical, generated $7,808 million in net income for the year ended December 31, 2008.
1. The company declared and paid $3,278.5 million in dividends during 2008.
2. Merck stock was selling for $57.37 per share on January 1, 2008, and for $30.40 per share on December 31, 2008.
3. As of January 1, 2008, the company had 2,169 million shares of common stock outstanding. During 2008, the company repurchased 35.7 million shares. Assume that the purchases were made evenly throughout the year.
a. Compute the following ratios:
(1) Earnings per share
(2) Price/earnings
(3) Dividend yield
(4) Stock price return
b. What effect (increase, decrease, or no effect) did each of the three events above have on Merck’s return on equity ratio?
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Posted 07 Jun 2017 08:06 AM
My Price 5.00
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