Answer:
(A) Earnings per share = $1.19 per share, Dividends per share = $0.17 per share, and book value per share is $11.69 per share
(B) Market-to-book ratio = 2.52 times, and the price-earnings ratio is 24.79 times
(C) Price-sales ratio is 1.73 times
Explanation:
(A) Earning per share = (Net income) ÷ (Number of shares)
where,
Net income = Retained earnings + dividend paid
= $630,000 + $105,000
= $735,000
And, the number of shares are 620,000 shares
Now put these values to the above formula
So, the value would equal to
= ($735,000) ÷ (620,000 shares)
= $1.19 per share
Dividend per share = (Total dividend) ÷ (number of shares)
= ($105,000) ÷ (620,000 shares)
= $0.17 per share
Book value per share = (Total equity) ÷ (number of shares)
= $7,250,000 ÷ (620,000 shares)
= $11.69 per share
(B) Market to book ratio = (Market price per share) ÷ (book value per share)
= $29.50 ÷ $11.69
= 2.52 times
Price-earnings ratio = (Market price per share) ÷ (Earning per share)
= $29.50 ÷ $1.19
= 24.79 times
(C) Price sales ratio = (Market price per share) ÷ (Total sales per share)
where,
Total sales per share = (total sales) ÷ (Number of shares)
= (10,550,000) ÷ (620,000 shares)
= $17.01 per share
So, the price sales ratio = $29.50 ÷ $17.01
= 1.73 times
