Earnings per Share, Price-Earnings Ratlo, DIvldend Yeld The following Informatio
ID: 2391471 • Letter: E
Question
Earnings per Share, Price-Earnings Ratlo, DIvldend Yeld The following Information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $15 par value (no change during the year) 4,000,000 The net Income was $1,280,000 and the declared dividends on the common stock were $80,000 for the current year. The market price of the common stock is $21.00 per share For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the divldends per share, and (d) the dividend yleld. If required, round your answers to two decimal places a. Earnings per Share b. Price-Earnings Ratio d. Dividend vieldExplanation / Answer
Answers
A
Common Stock
$ 48,00,000.00
B
Par Value per share
$ 15.00
C=A/B
No. of common stock shares
320000
A
Preferred Stock
$ 40,00,000.00
B
Par Value per share
$ 100.00
C=A/B
No. of Preferred stock shares
40000
D
Preferred dividend per share
$ 8.00
E=CxD
Preference stock dividend
$ 3,20,000.00
A
Net Income
$ 12,80,000.00
B
Preference stock dividend
$ 3,20,000.00
C=A-B
Net Income for Common Stockholders
$ 9,60,000.00
D
No. of common stock shares
320000
E=C/D
Earning per share
$ 3.00
A
Market price per common stock shares
$ 21.00
B
Earning per share
$ 3.00
C=A/B
Price Earnings ratio
7
A
Total Dividend declared
$ 80,000.00
B
No. of common stock shares
320000
C=A/B
Dividends per share
$ 0.25
A
Dividends per share
$ 0.25
B
Market price per common stock shares
$ 21.00
C=A/B
Dividend Yield
1.19%
A
Common Stock
$ 48,00,000.00
B
Par Value per share
$ 15.00
C=A/B
No. of common stock shares
320000
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