For 2021, the annual earnings for Thompson Computer Company were $9,800,000. The corporation has 4,449,400 shares of common stock outstanding and pays an annual dividend of $0.75 per share. The closing price for a share of common stock was $29 last night. Calculate the following. (Round all answers to two decimal places if necessary.) 1. Current yield: 2. Earnings per share: 3. Price-earnings (PE) ratio: % X S 4

For 2021, the annual earnings for Thompson Computer Company were $9,800,000. The corporation has 4,449,400 shares of common stock outstanding and pays an annual dividend of $0.75 per share. The closing price for a share of common stock was $29 last night. Calculate the following. (Round all answers to two decimal places if necessary.) 1. Current yield: 2. Earnings per share: 3. Price-earnings (PE) ratio: % X S 4

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...

See similar textbooks

Similar questions

The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 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). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
13. For 2020, the annual earnings for General Jet Aviation were $6,600,000. The corporation has 4,844,300 shares of common stock outstanding and pays an annual dividend of $0.65 per share. The closing price for a share of common stock was $30 last night. Calculate the following. (Round all answers to two decimal places if necessary.) 1. Current yield: % 2. Earnings per share: $ 3. Price-earnings (PE) ratio:
Alfa Pharma, shows the following financials for the year ended TABLE BELOW EBIT is ₹ 50,00,000.00Debt Outstanding ₹ 25,00,000.00Rate Of Interest On Debt Is 12%Cost Of Equity Is 15%Number Of Shares Outstanding Is 5,00,000Book Value Per Share Is Rs10Tax Rate 0.50The company pays out all the earnings as dividend and the company is expecting zero growth for the future.Describe and calculate- Earning per share and Price of the share.
Novak Company’s net income for 2020 is $594,000, and 91,000 shares of common stock were issued and outstanding during 2020. The only potentially dilutive securities outstanding were 26,000 executive stock options issued during 2019, each exercisable for one share at $19.50, none of these have been exercised. The average market price of Novak’s stock during 2020 was $25.00.(a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter a dollar amount rounded to 2 decimal places (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2020, with an exercise price of $26.00 (the market price of the common stock on that date). The average market price during the last 3 months of 2020 was $28.50. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter the diluted earnings per share in dollar rounded to 2 decimal places
Ellington Electronics wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $3.70 per share, and the current price of its common stock is $76 per share. The expected growth rate is 7 percent. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. Compute the cost of retained earnings (Ke). Cost of retained earnings % b. If a $7.0 flotation cost is involved, compute the cost of new common stock (Kn). Cost of new common stock %
Marin Company’s net income for 2020 is $691,000, and 91,000 shares of common stock were issued and outstanding during 2020. The only potentially dilutive securities outstanding were 23,000 executive stock options issued during 2019, each exercisable for one share at $21.00, none of these have been exercised. The average market price of Marin’s stock during 2020 was $26.50.(a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter a dollar amount rounded to 2 decimal places (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2020, with an exercise price of $27.50 (the market price of the common stock on that date). The average market price during the last 3 months of 2020 was $30.00. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter the diluted earnings per share in dollar rounded to 2 decimal places
In January 2021, Tesla Inc shares were priced at $860. The value of the company at that stock price was $810 billion. The reported price earnings ratio TTM (Trailing Twelve Month) ratio in the Financial Times at that date was 1,693. At the same date, Volkswagen (VW) was worth €89 billion and had P/E (TTM) of 18. In January 2021, 15 of the 25 investment analysts following Tesla had buy or hold ratings on the stock and 10 had sell. In finance terms, how can you justify Tesla’s stock price? It is a growth stock, but how can you pay that price for growth?
Larkspur Corporation earned $2,859,000 during 2020. The company had a weighted-average of 533,000 shares of common stock outstanding. The average market price of common stock was $31 per share during the year. The company also had 50,000 warrants outstanding, of which two warrants could be exercised to purchase one share of common stock for $29 in total.(a) Are the warrants dilutive?select an option (b) Compute basic earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Basic earnings per share $enter the basic earnings per share in dollar rounded to 2 decimal places (c) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter the diluted earnings per share in dollar rounded to 2 decimal places
If RGD Corporation earned P1.50 per shahre last year and its stock traded at P30 per share , what should the corporation's stock trade for if it earns P2 per share this year? a. P35 b. P40 c. P50 d. P60
Eakins Inc.'s common stock currently sells for $55.00 per share, the company expects to earn $2.75 per share during the current year, its expected payout ratio is 70%, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings? A. 0.21% B. 0.30% C. 0.37% D. 0.24% E. 0.27%
Razi Co. had net income for 2021 of $300,000. The average number of shares outstanding for the period was 200,000 shares. The average number of shares under outstanding options, at an option price of $30 per share is 12,000 shares. The average market price of the ordinary shares during the year was $36. What should Razi Co, report for diluted earnings per share for the year ended 2021? Select one: a.$1.50 $1.49 C.$1.42 d.1.43
Consider the following information for Federated Junkyards of America. Debt: $76,000,000 book value outstanding. The debt is trading at 91% of book value. The yield to maturity is 10%. Equity: 2,600,000 shares selling at $43 per share. Assume the expected rate of return on Federated’s stock is 19%. Taxes: Federated’s marginal tax rate is Tc = 0.21. Calculate the weighted-average cost of capital (WACC). (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)