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Earnings per Share, Price-Earnings Ratio, Dividend Yield

The following information was taken from the financialstatements of Tolbert Inc. for December 31 of the current fiscalyear:

Common stock, $10 par value (no change during the year) $2,300,000
Preferred $10 stock, $200 par (no change during the year) 6,000,000

The net income was $760,000 and the declared dividends on thecommon stock were $57,500 for the current year. The market price ofthe common stock is $14.00 per share.

For the common stock, determine (a) the earnings per share, (b)the price-earnings ratio, (c) the dividends per share, and (d) thedividend yield. If required, round your answers to two decimalplaces.

a. Earnings per Share $
b. Price-Earnings Ratio
c. Dividends per Share $
d. Dividend Yield %

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28 Sep 2019
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Related questions

determine for the current year the rate earned on total assets,rate earned on stockholders' equity, rate earned on commonstockholders' equity, earnings per share on common stock,price-earnings ratio on common stock, and dividend yield on commonstock. the current market price per share of common stock is$25.

Current Year Preceding Year
Current assets 745000 820000
Property Plant and Equipment 1510000 1400000
Current Liabilities 160000 140000
Long term liabilities (12%) 400000 400000
Preferred 10% stock 250000 250000
Common Stock $25 par 1200000 1200000
Retained Earnings:
Beginning of year 240000 160000
Net Income for year 95000 155000
Preferred dividends declared (25000) (25000)
Common dividends declared (70000) (60000)

From the following data, determine for the current year the (a)rate earned on total assets, (b) rate earned on stockholders'equity, (c) rate earned on common stockholders' equity, (d)earnings per share on common stock, (e) price-earnings ratio oncommon stock, and (f) dividend yield on common stock. Assume thatthe current market price per share of common stock is $25. (Presentkey figures used in your computations.)


Current year Preceding Year
Current assets $ 745,000 $ 820,000
Property, plant, and equipment 1,510,000 1,400,000
Current liabilities
(non-interest-bearing) 160,000 140,000
Long-term liabilities, 12% 400,000 400,000
Preferred 10% stock 250,000 250,000
Common stock, $25 par 1,200,000 1,200,000
Retained earnings:
Beginning of year 230,000 160,000
Net income for year 110,00 155,000
Preferred dividends declared (25,000) (25,000)
Common dividends declared (70,000) (60,000)

The following information pertains to Parsons Co.: Preferredstock, cumulative: Par value per share $100 Dividend rate 8% Sharesoutstanding 9,000 Dividends in arrears none Common stock: Par valueper share $10 Shares issued 130,000 Dividends paid per share $2.10Market price per share $48 Additional paid-in capital $480,000Unappropriated retained earnings (after closing) $250,000 Retainedearnings appropriated for contingencies $320,000 Common treasurystock: Number of shares 9,000 Total cost $250,000 Net income$616,000 Compute (assume no changes in balances during the pastyear): (Round per share and ratios to 2 decimal places, e.g. $15.75or 15.75%.) (a) Total amount of stockholders' equity in the balancesheet $ (b) Earnings per share of common stock $ per share (c) Bookvalue per share of common stock $ per share (d) Payout ratio ofcommon stock % (e) Return on common stock equity %

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