Calculating key stock performance metricsThe Castle Company recently reported net profits after taxes of $11.4 million. It has 3.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $60 per share. Compute the stock's earnings per share (EPS). Round the answer to two decimal places.$ per shareWhat's the stock's P/E ratio? Round the answer to two decimal places.$ timesDetermine what the stock's dividend yield would be if it paid $2.82 per share to common stockholders. Round the answer to two decimal places. %

Computation of Earning Per Share(EPS): EPS=Net Profit after tax-Preferred dividendsNumber of…

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Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...

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Calculating key stock performance metrics

The Castle Company recently reported net profits after taxes of $11.4 million. It has 3.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $60 per share.

Compute the stock's earnings per share (EPS). Round the answer to two decimal places.
$ per share
What's the stock's P/E ratio? Round the answer to two decimal places.
$ times
Determine what the stock's dividend yield would be if it paid $2.82 per share to common stockholders. Round the answer to two decimal places.
%

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