1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Levart [38]
3 years ago
11

he following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Com

mon stock, $50 par value (no change during the year) $11,500,000 Preferred $10 stock, $200 par (no change during the year) 6,000,000 The net income was $714,000 and the declared dividends on the common stock were $57,500 for the current year. The market price of the common stock is $14.40 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share $ b. Price-Earnings Ratio c. Dividends per Share $ d. Dividend Yield %
Business
1 answer:
Marrrta [24]3 years ago
8 0

Answer:

a. Earnings per Share $

earnings per share = (net income - preferred dividends) / average outstanding stocks

  • net income = $714,000
  • preferred dividends = ($6,000,000 / $200) x $10 = 30,000 x $10 = $300,000
  • average outstanding shares = $11,500,000 / $50 = 230,000 shares

EPS = ($714,000 - $300,000) / 230,000 stocks = $1.80 per share

b. Price-Earnings Ratio

P/E ratio = current stock price / EPS

  • current stock price = $14.40
  • EPS = $1.80

P/E ratio = $14.40 / $1.80 = 8

c. Dividends per Share $

DPS = total dividends / total outstanding stocks

  • total dividends = $57,500
  • total outstanding stocks = 230,000

DPS = $57,500 / 230,000 stocks = $0.25 per stock

d. Dividend Yield %

dividend yield = dividend per share / stock price

  • DPS = $0.25
  • stock price = $14.40

dividend yield = $0.25 / $14.40 = 1.74%

You might be interested in
Negacho, a food and beverage company, introduced a new flavor of potato chips called South Indian Chillis. It received a positiv
Genrish500 [490]

Answer:

Inflow of innovation

Explanation:

Negacho introduced its new flavoured chips and received positive response. This shows that the market is open to adopting new innovative products

This is what prompted Brex Mex to introduce their own flavored potato chips.

Basically the market is favorable to introduction of new ideas and products.

8 0
3 years ago
Which of the following statements about the insurance verification process is a FALSE statement? A) Directly affects payment del
Lorico [155]

Answer:

B

Explanation:

Insurance verification cannot be performed until the patient arrives for services

3 0
4 years ago
Woodman Products, Inc., has found that new products follow a learning curve. The first two units have been completed with the fo
ahrayia [7]

Answer:

(a) 72

(b) 57.6

(c) 46.08

Explanation:

Given that,

Units produced = 1

Marginal Labor Time = 112.50

Units produced = 2

Marginal Labor Time = 90.00

First, we need to calculate the learning rate.

Learning Rate:

= (Marginal labor time for producing 2 units ÷ Marginal labor time for producing 1 units) × 100

= (90 ÷ 112.50) × 100

= 80%

At production level of 1 unit:

Marginal Labor time = 112.5

At production level of 2 units:

Marginal Labor time:

= Marginal Labor time at 1 unit × Learning rate

= 112.5 × 80%

= 90

(a) At production level of 4 units:

Marginal Labor time:

= Marginal Labor time at 2 units × Learning rate

= 90 × 80%

= 72

(b) At production level of 8 units:

Marginal Labor time:

= Marginal Labor time at 4 units × Learning rate

= 72 × 80%

= 57.6

(c) At production level of 16 units:

Marginal Labor time:

= Marginal Labor time at 8 units × Learning rate

= 57.6 × 80%

= 46.08

5 0
3 years ago
What are the cost and consequences of providing welfare payments and consumer subsidies
olganol [36]
The cost is clearly came from the national Budget. By providing welfare payments and subsidies, there will be less budget for other Government's plan.

As for the consequences, there are positive and negative consequence
Positive :
- It could improve the quality of life of the people in that country

Negative :
- There's a risk that people could rely on the welfare too much and became heavily dependent on it

4 0
3 years ago
What is a good good excuse to give your Professor for not passing homework in in time because your sick and have no access to in
In-s [12.5K]

Answer:

Dear Professor, I just wanted to let you known I failed my homework because, after I moved I have no access to the internet. I am very sorry.

5 0
3 years ago
Other questions:
  • I am not good at math, please help all grades are due monday
    7·1 answer
  • A bank initially has $190 million in assets and $150 million in liabilities. the banks net worth (capital) is _____________ mill
    13·1 answer
  • Phillip, owner of Technology Sales, said, "We have to focus on our customers and how can we beat the competition, so we have to
    9·1 answer
  • Ryker Manufacturing, inc. provided the following information for the year: The inventory account balances as of January 1 are gi
    11·1 answer
  • Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short-term note paya
    14·1 answer
  • Advertising expenses are a significant component of the cost of goods sold. Listed below is a frequency distribution showing the
    11·1 answer
  • Amniocentesis may be preferred over chorionic villus sampling (cvs) for karyotyping because cvs takes much longer to obtain a ka
    8·1 answer
  • The attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value i
    14·1 answer
  • On January 14, Whispering Winds Corp. purchased supplies of $460 on account. The entry to record the purchase will include
    5·1 answer
  • In a Word document,respond to the question below in 5 complete sentences. Once completed, submit your Word document in the Schoo
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!