Recent financial statements ior Madison Company follow : AssetsCurrent assets: Madison Company Balance Sheet June 30 Cash$ 21,000Accounts receivable , net160,000Merchandise inventory prepaid expenses;300,0009,000Total current assets490 ,000Plant and equipment , net810,000Total assets$1 ,300,000Liabilities and Stockholders' EquityLiabilities:Current liabilities$ 200,000Bonds payable, 10%300,000Totalliabil ies500,000Stockholders' equ:Common stock, $5 par value$100,000Retained earnings700,000Total stockholders' equity600,000Totalliabil ies and stockholders' equ$1 ,300,000Madison Company Income StatementFor the Year Ended June 30Sales$2,100,000Cost of goods sold1,260,000Gross rna rgin840,000Selling and administrative expenses660,000Net operating income180,000Interest expense30,000Net income before taxes150,000Income taxes45,000Net income$ 105,000Account balances at the beginning of the company 's fiscal year were : accounts receivable , $140,000 ;and inventory, $260,000. All sales were on account .Assume that Madison Company paid dividends of $3.15 per share during the year . Also assume that the company's common stock had a market price of $63 per share on June 30 and that there was no change in the number of outstanding shares of common stock during the fiscal year .Required:Compute the following :1.Earnings per share . (Round your answer to 2 decimal places. Omit the "$" sign in your response.)Earnings per share$2.Dividend payout ratio. (Round your intermediate calculations to 2 decimal places.Omit the "% " sign in your response.)Dividend payout ratio3.Dividend yield ratio. (Omit the"%" sign in your response.)Dividend yield ratio4.Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1decimal place.)Price-earnings ratio
Recent financial statements ior Madison Company follow : AssetsCurrent assets:
Madison Company Balance Sheet June 30 Cash$ 21,000Accounts receivable , net160,000Merchandise inventory prepaid expenses;300,0009,000Total current assets490 ,000Plant and equipment , net810,000Total assets$1 ,300,000Liabilities and Stockholders' EquityLiabilities:Current liabilities$ 200,000Bonds payable, 10%300,000Totalliabil ies500,000Stockholders' equ:Common stock, $5 par value$100,000Retained earnings700,000Total stockholders' equity600,000Totalliabil ies and stockholders' equ$1 ,300,000Madison Company Income StatementFor the Year Ended June 30Sales$2,100,000Cost of goods sold1,260,000Gross rna rgin840,000Selling and administrative expenses660,000Net operating income180,000Interest expense30,000Net income before taxes150,000Income taxes45,000Net income$ 105,000Account balances at the beginning of the company 's fiscal year were :
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