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The Anderson Company has net profits of $20 million, sales of $250 million, and 4.5 million shares of common stock outstanding. The company has total assets of $175 million and total stockholders’ equity of $95 million. It pays $1.50 per share in common dividends, and the stock trades at $35 per share. Given this information, determine the following:   Anderson’s EPS Anderson’s book value per share and price-to-book-value ratio The firm’s P/E ratio The company’s net profit margin The stock’s dividend payout ratio and its dividend yield The stock’s PEG ratio, given that the company’s earnings have been growing at an average annual rate of 7.5%

The Anderson Company has net profits of $20 million, sales of $250 million, and 4.5 million shares of common stock outstanding. The company has total assets of $175 million and total stockholders’ equity of $95 million. It pays $1.50 per share in common dividends, and the stock trades at $35 per share. Given this information, determine the following:   Anderson’s EPS Anderson’s book value per share and price-to-book-value ratio The firm’s P/E ratio The company’s net profit margin The stock’s dividend payout ratio and its dividend yield The stock’s PEG ratio, given that the company’s earnings have been growing at an average annual rate of 7.5%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 13P
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The Anderson Company has net profits of $20 million, sales of $250 million, and 4.5 million shares of common stock outstanding. The company has total assets of $175 million and total stockholders’ equity of $95 million. It pays $1.50 per share in common dividends, and the stock trades at $35 per share. Given this information, determine the following:

 

  1. Anderson’s EPS
  2. Anderson’s book value per share and price-to-book-value ratio
  3. The firm’s P/E ratio
  4. The company’s net profit margin
  5. The stock’s dividend payout ratio and its dividend yield
  6. The stock’s PEG ratio, given that the company’s earnings have been growing at an average annual rate of 7.5%
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