Gerrard Construction Co. is an hollow contractor. The forthcoming summarized plea (in thousands) are enslaved from the December 31, 2007, financial statements:

FOR THE YEAR ENDED DECEMBER 31, 2007:

Net Revenue....................... ...$16,100 
Cost of Services Provided..........5,700
Depreciation cost...............3,250
Operating Income....................$7,150
Interest Expense......................1,900
Income Tax cost.................1,600
Net Income..............................$3,650

AT DECEMBER 31, 2007

ASSETS
Cash and short-promise investments..................$1,400
Accounts receivable, net...............................4,900
Property, fund, and equipment, net...............38,700
Total Assets................................................$45,000

LIABILITIES AND OWNERS EQUITY

Accounts payable..........................................$750
Income taxes payable.....................................800
Notes payable (covet promise)...............................23,750
Paid-in important................................................5,000
Retained hues..........................................14,700
Total liabilities and owners equity....................$45,000

At December 31,2006 entirety movabless were $41,000 and entirety owners equity was $16,300. There were no changes in notes payable or hired-in important during 2007.

1 Gerrard Construction Company wishes to lease some new sphere moving equipment from Caterpillar on a covet-promise plea. What contact (increase, reduce, or no movables) would a important lease of $2 favorite enjoy on the company's obligation bearing and obligation/equity bearing?

2 Calculate the totality of dividends manifest and hired during the year ended December 31, 2007 (Hint: Do a T-account anatomy of retained hues.)

3 Review the reply to doubt estimate 2. At this term affect that Gerrard Construction Co. had 1,200,000 portion-outs of $1 par compute contemptible fund ungathered throughout 2007, and that the dispense cost per portion-out of contemptible fund at December 31, 2007 was $18.75. Calculate the forthcoming profitability measures for the year ended December 31, 2007.

1. Hues per portion-out of contemptible fund

2. Price/hues bearing
3. Dividend yield
4. Dividend payout bearing