ps//newconnect.mheducation.com/flow/connect.html re-Built Problems Saved Makers
ID: 2821958 • Letter: P
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ps//newconnect.mheducation.com/flow/connect.html re-Built Problems Saved Makers Corp. had additions to retained earnings for the year just ended of $359,000 The firm paid out $181,000 in cash dividends, and it has ending total equity of $4.86 million. The company currently has 150,000 shares of common stock outstanding. a. What are earnings per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) your answer to 2 decimal places, e.g.. 3216.) round your answer to 2 decimal places, eg., 32.16.) not round intermediate calculations and round your answer to 2 decimal places, b. What are dividends per share? (Do not round intermediate celculations and round c. What is the book value per share? (Do not round intermediate calculetions and d. If the stock currently sells for $75 per share, what is the market-to-book ratio? (Do e. What is the price-earnings ratio? (Do not round intermediate calculations and round f. If the company had sales of $4.59 milion, what is the price-sales ratio? (Do not round e.g. 32.16.) your answer to 2 decimal places, e.g., 32.16.) intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Eamings per share b. Dividends per share c. Book value per share d. Market-to-book ratio e Price-earnings ratio mes . Price-sales ratio times re to searchExplanation / Answer
Net income = Dividends + Retained earnings
a.
Earnings per share = Net Income / Number of shares = (359000+181000)/150000 = $3.60
b.
Dividend per share = Dividends/ Number of shares = 181000/150000 = $1.21
c.
Book Value per share = Total equity / Number of shares = 4860000/150000 = $32.40
d.
Market to book ratio = Stock price / Book value per share = 75/32.40 = 2.31 times
e.
Price earnings ratio = Stock price / Earnings per share = 75 / 3.60 = 20.83 times
f.
Price to sales ratio = Number of share x Stock price / Total sales = 75 x 150000 / 4590000 = 2.45 times
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