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FromTheMoon [43]
3 years ago
12

"Makers Corp. had additions to retained earnings for the year just ended of $213,000. The firm paid out $183,000 in cash dividen

ds, and it has ending total equity of $4.88 million. The company currently has 110,000 shares of common stock outstanding."What are earnings per share?What are dividends per share?What is the book value per share?If the stock currently sells for $63 per share, what is the market-to-book ratio?What is the price-earnings ratio?If the company had sales of $3.52 million, what is the price-sales ratio?
Business
1 answer:
yuradex [85]3 years ago
6 0

Answer:

Dividends per share is $1.66

Book value per share is $44.36

Market-to-book ratio is 1.42

Price-earnings ratio is 32.54

Price-sales ratio is 1.97

Explanation:

1 ) What are dividends per share?

Dividends per share = cash dividends/ number of shares = $183,000/ 110,000 = $1.66

2) What is the book value per share?

Book value per share = total equity/ number of shares = $4,880,000 / 110,000 = $44.36

3) If the stock currently sells for $63 per share, what is the market-to-book ratio?

Market-to-book ratio = $63/ $44.36 = 1.42

4) What is the price-earnings ratio?

The price of Makers Corp. = market price * number of shares = $63* 110,000 = $6,930,000

Price-earnings ratio = $693,000/ $213,000 = 32.54

5) If the company had sales of $3.52 million, what is the price-sales ratio?

Price-sales ratio = market price/ sales = $6,930,000/ $3,520,000 = 1.97

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