ABC Company had addition to retained earnings for the current fiscal year just ended of $395,000. The firm paid out $195,000 in cash dividend, and it has ending total equity of $5.3 million. The company currently has 170,000 shares of common stock outstanding. Please answer the following questions: What are earnings per share (E/PS)? Dividends per share? Book value of share?

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Asked Sep 12, 2020

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ABC Company had addition to retained earnings for the current fiscal year just ended of $395,000. The firm paid out $195,000 in cash dividend, and it has ending total equity of $5.3 million. The company currently has 170,000 shares of common stock outstanding. Please answer the following questions:

If the stock currently sells for $64 per share, what is the market-to-book ratio?
The price to earnings ratio (P/E)?
The company had sales of $5.15 million, what is the price to sales ratio (P/S)?
Finally, explain the implication of P/E ratio for different types of investors.

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