The following financial information is available for Sheridan Ltd. as at December 31 (in thousands, except for per share amounts): 2021 2020 2019 Profit $2,077 $2,238 $2,796 Preferred share dividends (total) $73 $43 $30 Weighted average number of common shares 527 525 526 Dividends per common share $2.50 $2.25 $2.10 Market price per common share $43.00 $49.75 $56.25 (a) Calculate the earnings per share, price-earnings ratio, and payout ratio for the common shareholders for each of the three years. 2021 2020 2019 Earnings per share (Round answer to 2 decimal places, e.g. 5.25.) $enter Earnings per share in dollars rounded to 2 decimal places $enter Earnings per share in dollars rounded to 2 decimal places $enter Earnings per share in dollars rounded to 2 decimal places Price-earnings ratio (Round answer to 1 decimal place, e.g. 15.5.) enter Price-earnings ratio in times rounded to 1 decimal place times enter Price-earnings ratio in times rounded to 1 decimal place times enter Price-earnings ratio in times rounded to 1 decimal place times Payout ratio (Round answer to 3 decimal places, e.g. 0.255.) enter Payout ratio rounded to 2 decimal places enter Payout ratio rounded to 2 decimal places enter Payout ratio rounded to 2 decimal places

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26P

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The following financial information is available for Sheridan Ltd. as at December 31 (in thousands, except for per share amounts):

	2021	2020	2019
Profit	$2,077	$2,238	$2,796
Preferred share dividends (total)	$73	$43	$30
Weighted average number of common shares	527	525	526
Dividends per common share	$2.50	$2.25	$2.10
Market price per common share	$43.00	$49.75	$56.25

(a)

Calculate the earnings per share, price-earnings ratio, and payout ratio for the common shareholders for each of the three years.

	2021		2020		2019
Earnings per share (Round answer to 2 decimal places, e.g. 5.25.)	$enter Earnings per share in dollars rounded to 2 decimal places			$enter Earnings per share in dollars rounded to 2 decimal places		$enter Earnings per share in dollars rounded to 2 decimal places
Price-earnings ratio (Round answer to 1 decimal place, e.g. 15.5.)	enter Price-earnings ratio in times rounded to 1 decimal place	times		enter Price-earnings ratio in times rounded to 1 decimal place	times	enter Price-earnings ratio in times rounded to 1 decimal place	times
Payout ratio (Round answer to 3 decimal places, e.g. 0.255.)	enter Payout ratio rounded to 2 decimal places			enter Payout ratio rounded to 2 decimal places		enter Payout ratio rounded to 2 decimal places

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