Lundberg Corporation\'s most recent balance sheet and income statement appear be

ID: 2591629 • Letter: L

Question

Lundberg Corporation's most recent balance sheet and income statement appear below:

Dividends on common stock during Year 2 totaled $50 thousand. The market price of common stock at the end of Year 2 was $9.43 per share.

Compute the gross margin percentage for Year 2.

Compute the earnings per share (of common stock) for Year 2

Compute the price-earnings ratio for Year 2.

Compute the dividend payout ratio for Year 2

Compute the dividend yield ratio for Year 2.

Lundberg Corporation's most recent balance sheet and income statement appear below:

a. Gross margin percentage = Gross margin/ Sales

= $543/ $1400 = 38.79%

b. Earnings per share = Net income/ No. of common stock

= $140/ 100 = $1.40

c. Price-earnings ratio = Market price/ EPS

= $9.43/ $1.40 = 6.74 times

d. Dividend payout ratio = Dividend amount/ Net income

= $50000/ $100000 = 0.50

e. Dividend yield ratio = Dividend per share/ Price per share

= ($50000/100000)/ $9.43

= 5.30%

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