8. value: 5.88 points Makers Corp. had additions to retained earnings for the ye

Question

8. value: 5.88 points Makers Corp. had additions to retained earnings for the year just ended of $194,000. The firm paid out $184,000 in cash dividends, and it has ending total equity of $4.89 million. The company currently has 120,000 shares of common stock outstanding. What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16) Earnings per share What are dividends per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Dividends per share What is the book value per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Book value er share If the stock currently sells for $62 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Explanation / Answer

Net income = dividends+increase in retained earnings
=194,000+184,000=378,000

EPS= NI/number of shares=378,000/120,000= $3.15

Dividend per share = 184,000/120,000 $1.53

Book value per share = Ending equity value / number of shares= 4,890,000/120,000 $40.75

Market to book ratio= 62/40.75= 1.52 times

PE ratio = price /EPS= 62/3.15= 19.68

Price / sales = 62/(3.96/.12)
62/33=1.88

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