Chapter 7
Corporations: The Financial Statements
344
Required
a) Calculate the following ratios for both companies.
1. EPS Ratio
2. Dividend Payout Ratio
3. Price-Earnings Ratio
1. EPS Ratio
Sam
Corporation
Tally
Corporation
EPS Ratio
2. Dividend Payout Ratio
Sam
Corporation
Tally
Corporation
Dividend Payout Ratio
3. Price-Earnings Ratio
Sam
Corporation
Tally
Corporation
Price-Earnings Ratio
b) Compare the performance and position of the two companies by interpreting the ratios
calculated in part a).
