During 2018, Baird Corporation reported after-tax net income of $3,620,000. During the year, the number of shares of stockoutstanding remained constant at 9,780 of $100 par, 10 percent preferred stock and 398,000 shares of common stock. The company'stotal stockholders' equity is $19,600,000 at December 31, 2018. Baird Corporation's common stock was selling at $52 per share at theend of its fiscal year. All dividends for the year have been paid, including $5.00 per share to common stockholders.Requireda. Compute the earnings per share. (Round your answer to 2 decimal places.)b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.)c. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal places.)d. Compute the dividend yield. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).)Answer is complete but not entirely correct.Earnings per shareBook value persharePrice-earnings ratioDividend yield8.85а.b.49.2510.40 timesC.d.9.62

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Asked Nov 15, 2019
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During 2018, Baird Corporation reported after-tax net income of $3,620,000. During the year, the number of shares of stock outstanding remained constant at 9,780 of $100 par, 10 percent preferred stock and 398,000 shares of common stock. The company’s total stockholders’ equity is $19,600,000 at December 31, 2018. Baird Corporation’s common stock was selling at $52 per share at the end of its fiscal year. All dividends for the year have been paid, including $5.00 per share to common stockholders.

 

Required

Compute the earnings per share. (Round your answer to 2 decimal places.)

Compute the book value per share of common stock. (Round your answer to 2 decimal places.)

Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal places.)

Compute the dividend yield. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

During 2018, Baird Corporation reported after-tax net income of $3,620,000. During the year, the number of shares of stock
outstanding remained constant at 9,780 of $100 par, 10 percent preferred stock and 398,000 shares of common stock. The company's
total stockholders' equity is $19,600,000 at December 31, 2018. Baird Corporation's common stock was selling at $52 per share at the
end of its fiscal year. All dividends for the year have been paid, including $5.00 per share to common stockholders.
Required
a. Compute the earnings per share. (Round your answer to 2 decimal places.)
b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.)
c. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal places.)
d. Compute the dividend yield. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
Answer is complete but not entirely correct.
Earnings per share
Book value per
share
Price-earnings ratio
Dividend yield
8.85
а.
b.
49.25
10.40 times
C.
d.
9.62
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During 2018, Baird Corporation reported after-tax net income of $3,620,000. During the year, the number of shares of stock outstanding remained constant at 9,780 of $100 par, 10 percent preferred stock and 398,000 shares of common stock. The company's total stockholders' equity is $19,600,000 at December 31, 2018. Baird Corporation's common stock was selling at $52 per share at the end of its fiscal year. All dividends for the year have been paid, including $5.00 per share to common stockholders. Required a. Compute the earnings per share. (Round your answer to 2 decimal places.) b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.) c. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal places.) d. Compute the dividend yield. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).) Answer is complete but not entirely correct. Earnings per share Book value per share Price-earnings ratio Dividend yield 8.85 а. b. 49.25 10.40 times C. d. 9.62

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Step 1

1.  Determine the earnings per share:

After tax income -Preferred dividend
Earmings per share =
Number of common shares
$3,620,000- (9780 x $100 x 10%)
398,000
$3,620,000-97,800
398,000
8.85
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After tax income -Preferred dividend Earmings per share = Number of common shares $3,620,000- (9780 x $100 x 10%) 398,000 $3,620,000-97,800 398,000 8.85

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Step 2
  1.   Determine the book value per share of common stock.
Total stockholders equity
Book value of preferred stock
Book value per share common stock
Number of common shares
$19,600, 000-(9780 x $100)
398, 000
$19,600,000-$978,000
398, 000
= $46.79
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Total stockholders equity Book value of preferred stock Book value per share common stock Number of common shares $19,600, 000-(9780 x $100) 398, 000 $19,600,000-$978,000 398, 000 = $46.79

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Step 3
  1.   Determine the price –earn...
Price per share
Price earnings ratio
Eamings per share
$52
$8.85
-5.88 Times
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Price per share Price earnings ratio Eamings per share $52 $8.85 -5.88 Times

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