Earnings per Share, Price-Earnings Ratio, Dividend Yield The following informati

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Earnings per Share, Price-Earnings Ratio, Dividend Yield

The following information was taken from the financial statements of Finn Resources Inc. for December 31 of the current fiscal year:

The net income was $850,000 and the declared dividends on the common stock were $80,000 for the current year. The market price of the common stock is $17.6 per share.

For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places.

Common stock, $25 par value (no change during the year) $6,250,000 Preferred $10 stock, $100 par (no change during the year) 3,000,000 HtD s-lalse Cacutbior 1 FX 13-5 A 2. Ex.13 11 go 3 Fx 13-7 Agn Famings ner SharA, Price-Famings Ratio, nividend Yield The ollowing infor mation was taken from the fail statements n Resuurces In, or December 31 the urrent fiscal year ,250,000 3,000,000 Preterred 10 tock, $100 par ino chanpe durina the ycar) 5. EX15-11 ALGO b the price earnings rato, e dr idends per share and d) the divden yield. I required rund your answers to two decimal places For the common stock, determine a the earnings per share a. Earnings er Share b. Prcc Earning: RatiD c 6 FX 159A Dividends pe Share d. Divldend Yidd EX 13-21AL 10. EX.14-15 ALGO 11. P1.14 2.Ago Previcus Next Progress: 9111 rtoms me Remaining:1:4E09 O Type nere to search

Explanation / Answer

Annual preferred dividends = 30000*10= 300000 a Earnings per Share=(850000-300000)/250000= 2.20 b Price-Earnings Ratio = 17.6/2.2= 8 c Dividends per Share = 80000/250000= 0.32 d Dividend Yield = 0.32/17.6= 1.82%

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