You are considering investing in Wheatley International. The
company has provided you with the balance sheet and income
statement for the previous year. The current price of one share
of stock is $46.25. Earnings per share last year was
$1.86. Wheatley International has 100,000 shares outstanding
and no preferred stock.
Problem 1: Calculate the requested financial ratios:
a. Current ratio – 6.28%
b. Debt to equity ratio – 13.27%
c. Return on sales – 24%
d. Return on equity – 13.34%
e. Earnings per share – $2.53
Problem 2: Would you invest in Wheatley International? Why
or why not?
Yes, as their business is slowly growing