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Comparative financial statements for Weller Corporation, a merchandising company

ID: 2499200 • Letter: C

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 870,000 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 $0.40. The market value of the company’s common stock at the end of the year was $21.50. 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 870,000 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 $0.40. The market value of the company’s common stock at the end of the year was $21.50. All of the company’s sales are on account.

Explanation / Answer

Net Income (A) 4620000 Outstanding shares (B) 870000 Earning Per Share (A/B) 5.31034483 Market price per share (A) 21.5 Earning per share (B) 5.31034483 Price earnings ratio (A/B) 4.0487013 Dividend per share (A) 0.4 Earning per share (B) 5.31034483 Dividend payout ratio(B-A) 4.91034483 Dividend (A) 34800 net income (B 4620000 Dividend Yield*A/B 0.00753247

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