Compute the earnings per share for each company

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Reference no: EM131415670

The following information was obtained from the 2012 financial reports of Hathaway Toy Company and Yakima Manufacturing:

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Assume that the only change to shareholders' equity during 2012 is due to net income earned in 2012.

REQUIRED:

a. Which company is more effective at managing the capital provided by the owners?

b. Which company is more effective at managing capital provided by all investors?

c. Compute the earnings per share for each company.

d. Is Yakima Manufacturing using its debt effectively for the equity owners?

Reference no: EM131415670

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