Comparative financial statements for Weller Corporation, a merchandising company

Question

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the end of the year was $18. All of the company’s sales are on account.

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

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

Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.)

Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.)

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

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the end of the year was $18. All of the company’s sales are on account.

Explanation / Answer

Details Amt $ / Nos Net Income =       3,540,000.00 No of Outstanding Common stock          800,000.00    1.0 Earning Per share=3540000/800000= $                   4.43    2.0 Market Price per share =                     18.00 EPS =                       4.43 P/E Ratio= Market Price/EPS=                       4.06    3.0 Net Income         3,540,000.00 Dividend paid          320,000.00 Dividend Payout Ratio=320000/3540000= 9.04%    4.0 No of Outstanding Common stock          800,000.00 Dividend paid          320,000.00 Dividend per share =320000/800000= $                   0.40 Market Price per share =                     18.00 Dividend Yield= Dividend per share/Market Price per share= 2.22%    5.0 Total stockholders Equity=    34,880,000.00 No of Outstanding Common stock          800,000.00 Book Value per share=34880000/800000= $                 43.60

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