Current market price per share of company\'s stock is $17 for common stock and 4

Question

Current market price per share of company's stock is $17 for common stock and 404 for preferred stock. Preferred stock dividends are currently paid and $80K were paid in dividends to the common stockholders.

I need to calculate the following rations for 1997 and I need to show calculations.

a. earnings per share of common stock

b. dividend yield

c. accounts receivable turnover

d. acid test ratio

e. ratio nof liabilities to shareholders equity

f. rate earned on total assets
g. price earnings ratio

Explanation / Answer

a. EPS=(NI-Pref Div)/Common sh outstan=(91000-9000)/50000=$1.64/sh # of common shares outstan= 500000/$10/sh=50,000 b.Payout Ratio=Cash div/(NI-Pref div)=80,000/(91000-9000)=0.9756 c.A/R turnover = Net Sales/A/R=1,498,000/115,000=13.026 d. Acid test Ratio=Cash, Marketable securities, A/R(net)/Current liabilities=(165000+115000)/210,000=1.3333 e. Ratio of Liability to shareholder's Equity=Total liab/shareholder's Equity=310,000/829,500=0.3737 f. Rate earned on total assets=NI/Total Assets=91000/1,139,500=0.0798595 g. Price-earning Ratio= Market Price of common stock/EPS=17/1.64=10.365853

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