Makers Corp. had additions to retained earnings for the year just ended of $192,
ID: 2819687 • Letter: M
Question
Makers Corp. had additions to retained earnings for the year just ended of $192,000. The firm paid out $182,000 in cash dividends, and it has ending total equity of $4.87 million. The company currently has 100,000 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.)
If the stock currently sells for $65 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.)
What is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16.)
If the company had sales of $3.18 million, what is the price-sales ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Makers Corp. had additions to retained earnings for the year just ended of $192,000. The firm paid out $182,000 in cash dividends, and it has ending total equity of $4.87 million. The company currently has 100,000 shares of common stock outstanding.
Explanation / Answer
What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
=Net income/Share outstanding
=(192,000+182,000)/100,000
EPS=$3.74 per Share
What are dividends per share?
Dividend /Share outstanding
=182000/100000=1.82 per Share
What is the book value per share?
Book value per share=total equity/Share outstanding
=4870000/100000=48.70 Per Share
If the stock currently sells for $65 per share, what is the market-to-book ratio?.
=Market price/book value per share
=65/48.70=1.33
What is the price-earnings ratio?
=Market price/EPS
=65/1.82=35.71
If the company had sales of $3.18 million, what is the price-sales ratio?
Sales/Shares outstanding
=3180000/100000=$31.80 per Share
price-sales ratio=65/31.80=2.04
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