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lubilities section of the statement of financial position for Ingalls plc and Wilder Ltd. Each has assets E1519 (204) (Comparison of Alternative Forms of Financing) Shown below is the equity and otaling 4,200,000. Retained earnings (Cash dividends, 220,000) Non-current liabilities, 10% Current liabilities Ingalls ple Wilder Ltd. 2,900,000 Share capital-ordinary (20 par 2,000,000 Share capital-ordinary (20 par) Retained earnings (Cash 700,000 dividends, 328,000) 700,000 1,200,000 Current liabilities 600,000 300,000 4,200,000 4,200,000 5.000.00 inom od niebnobivib lobo For the year, each company has earned the same income before interest and taxes. Ingalls plc Wilder Ltd. Income from operations 1,200,000 1,200,000 Interest expense gotti 120,000 svislum-O- Income before income tax 1,080,000 Income tax (40%) 432,000 480,000 Net income par 648,000 720,000 rubro (chombo wold stubong ortibro At year-end, the market price of an Ingalls' share was 101, and Wilder's was 63.50. Assume statement of financial position amounts are representative for the entire year. nea 1,200,000 Instructions 29(d) bus (8) 200m a. Which company is more profitable in terms of return on total assets? b. Which company is more profitable in terms of return on ordinary share equity? c. Which company has the greater net income per share? Neither company issued or reacquired shares 19 d. From the point of view of net income, is it advantageous to the shareholders of Ingalls plc to have the non-current liabilities outstanding? Why? e. What is the book value per share for each company? DO during the year

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