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Sonbull [250]
3 years ago
13

Makers Corp. had additions to retained earnings for the year just ended of $248,000. The firm paid out $187,000 in cash dividend

s, and it has ending total equity of $4.92 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.) b. What are dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the book value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. If the stock currently sells for $80 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) e. What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) f. If the company had sales of $4.74 million, what is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
andre [41]3 years ago
5 0

Answer:  

(a.) Earning per share = \frac{Retained earning + dividend paid out }{common stock}

Earning per share = \frac{248000 + 187000 }{150000}

Earning per share = $2.90 per share

(b.) Dividend per share = \frac{Dividend paid out }{common stock}

Dividend per share =  \frac{187000}{150000}

Dividend per share = $ 1.25 per share

(c.) Book value per share =  \frac{Book value of equity }{common stock}

Book value per share =  \frac{4920000 }{150000}

Book value per share = $32.80 per share

(d.) Market to book ratio = \frac{Market price per share }{Book value per share}

Market to book ratio = \frac{80}{32.80}

Market to book ratio = $2.44 per share

(e.) Price - earning ratio = \frac{Market price per share }{Earning per share}

Price - earning ratio =  \frac{80}{2.90} = 27.59 times

(f.) Price sales ratio = \frac{Market price per share }{sales per share}

Price sales ratio = \frac{80}{\frac{4740000}{150000} } = \frac{80}{31.60} = 2.53 times

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