The financial statements for Castile Products, Inc., are given below: Account ba
ID: 2499327 • Letter: T
Question
The financial statements for Castile Products, Inc., are given below:
Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $290,000. All sales were on account.
Assume that Castile Products, Inc., paid dividends of $2.95 per share during the year. Also assume that the company’s common stock had a market price of $72 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)Number of common shares= 110000 /10 = 11000 shares
Earning per share = Net income /NUmber of common shares
= 168210 /11000
= $ 15.29 per share
2)Dividend paid = 2.95*11000= 32450
Payout ratio = 32450 / 168210
=.193 or 19.3%
3)Dividend yield ratio =dividend /current price
= 2.95 / 72
= .041 or 4.1%
4)PE ratio =Market price per share /EPS
= 72 /15.29
= 4.7
5)Book value per share =Total sharehoders equity /number of share
= 957000/11000
= $ 87 per share
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