The financial statements for Castile Products, Inc., are given below: Account ba

Question

The financial statements for Castile Products, Inc., are given below:

     Account balances at the beginning of the year were: accounts receivable, $240,000; and inventory, $340,000. All sales were on account.

Assume that Castile Products, Inc., paid dividends of $2.45 per share during the year. Also assume that the company’s common stock had a market price of $60 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.

Earnings per share. (Round your answer to 2 decimal places.)

Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)

Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)

Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)

Book value per share. (Round your answer to 2 decimal places.)

The financial statements for Castile Products, Inc., are given below:

Explanation / Answer

1) Earning per share = Net income/Share outstanding

= 224210/11000

Earning per share = 20.38 per share

2) Dividend payout ratio = DPS*100/EPS

= 2.45*100/20.38

Dividend payout ratio = 12.0%

3) Dividend yield ratio = DPS*100/MPS

= 2.45*100/60

Dividend yield ratio = 4.1%

4) Price earning ratio = MPS/EPS

= 60/20.38

Price earning ratio = 2.9 Times

5) Book value per share = 979000/11000 = 89 per share

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