(Solved by Humans)-Problem 16-51 Profitability Analysis Albion Inc. provided the following information for its most...

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Problem 16-51         Profitability Analysis Albion Inc. provided the following information for its most recent year of operation. The tax rate is 40%.     Sales $100,000 Preferred dividends $300 Cost of goods sold 45,000 Common dividends (paid December 31) $8,000 Net income 10,500 Common shares outstanding—January 1 30,000 shares Interest expense 350 Common shares outstanding—December 31 40,000 shares Assets—beginning balance 120,000 Average common stockholders’ equity $55,000 Assets—ending balance 126,000 Market price per common share $12 Required: 1.       Compute the following: (a) return on sales, (b) return on assets, (c) return on stockholders’ equity, (d) earnings per share, (e) price-earnings ratio, (f) dividend yield, and (g) dividend payout ratio. 2.       CONCEPTUAL CONNECTION If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain.