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the comparative financial statements of Stargell inc are as follows. the market

ID: 2590642 • Letter: T

Question

the comparative financial statements of Stargell inc are as follows. the market price the comparative financial statements of Stargell inc are as follows. the market price the comparative financial statements of Stargell inc are as follows. the market price the comparative financial statements of Stargell inc are as follows. the market price Obj. 3, 4, PR 14-4B Measures of liquidity, solvency and profitability 3. hatio of liabilities The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel to stockholders' equity, 0.4 common stock was $119.70 on December 31, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 EXCEL TEMPLATE $5,375,000 $4,545,000 925,000 $5,470,000 900,000 ..$6,275,000 Dividends: 45,000 45,000 50,000 5 95,000 95,000 On preferred stock 50,000 Retained earnings, December 31 180,000 $5,375,000

Explanation / Answer

16. Price earnings ratio= Market price/EPS

EPS= Earnings available to equity share holders/ Number of shares outstanding

EPS= 855000/100000= 8.55

Price earnings ratio= 119.7/8.55= 14

17. Dividend per share of common stock

18.Dividend yield= dividend per share/market price *100= 0.5/119.7 *100= 0.4177%

Earnings available to equity share holders: Net income 900000 Less: preferred dividend 45000 Earnings available to equity share holders 855000 Number of shares outstanding a Common stock 500000 b Par value 5 c=a/b Shares outstanding 100000