Tend between earnings per share and cash flow

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Reference no: EM131002089

The following statistics relate to Michgate, an electric utility:

	2007	2006	2005
(In thousands of dollars, except per share)
Operating expenses	$850,600	$820,200	$780,000
Operating revenues	1,080,500	1,037,200	974,000
Earnings per share	3.00	2.90	2.60
Cash flow per share	3.40	3.25	2.30
Operating property	3,900,000	3,750,000	3,600,000
Funded debt (long-term)	1,500,000	1,480,000	1,470,000
Net income	280,000	260,000	230,000

Required

a. Calculate the following for 2007, 2006, and 2005:

1. Operating ratio

2. Funded debt to operating property

3. Percent earned on operating property

4. Operating revenue to operating property

b. Comment on trends found in the ratios computed in (a).

c. Comment on the trend between earnings per share and cash flow per share

Reference no: EM131002089

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