Earnings per Share The following financial data is from Hi-Tech Instruments\' fi

Question

Earnings per Share
The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.)

(Thousands of Dollars)

If the company’s most recent price per share of common stock is $62.25, what is the company’s price-earnings ratio and dividend yield?

Round answers to one decimal place.

Price-earnings ratio

Answer

Dividend yield

Answer

%

2016 Sales revenue $210,000 Cost of goods sold 125,000 Net income 9,300 Dividends 3,600 Earnings per share 4.65

Explanation / Answer

Price-earnings ratio=Price per share/Earnings per share =62.25/4.65= 13.4 Dividend per share=3600000/2000000= $1.8 Dividend yield=1.8/62.25= 2.9%

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