The financial statements for Castile Products, Inc., are given below: Castile Pr

Question

The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 23,000 210,000 380,000 12,000 Total current assets Property and equipment, net 625,000 830,000 Total assets $1,455,000 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 10% $260,000 320,000 580,000 $130,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 745,000 875,000 $1,455,000 Total stockholders' equity Total liabilities and equity

Explanation / Answer

Earnings per share = Total Earnings / Outstanding shares

= $208,600/ 13,000

= $16.05

Outstanding Shares = Total Value of Outstanding Shares / Par Value of 1 share

= $130,000/ $10

= 13,000 shares

Dividend Payout Ratio = Yearly dividend per share / Earnings per share

= ($3.95 / $ 16.05) * 100

= 24.61 %

Dividend Yield Ratio = Annual Dividends Per share / Price Per Share

= ($3.95 / $67) * 100

= 5.89%

Price Earning Ratio = Market Value per Share / Earnings per Share

= $67 / $16.05

= 4.17445482866

= 4.2

Book Value per share = Total Shareholder's Equity / Total Shares Outstanding

= $875,000 / 13,000

= $67.31

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