Use the following information for Questions 6–8.Information concerning O’Sadnick, Inc., on December 31, 2013, is as follows:Book value per share . . . . . . . . . . . . . $ 6.00Dividends per share . . . . . . . . . . . . . . 1.00Earnings per share . . . . . . . . . . . . . . . 4.00Par value per share . . . . . . . . . . . . . . . 2.00Market price per share . . . . . . . . . . . . 16.006. What is O’Sadnick, Inc.’s price/earnings ratio for 2013?a. 0.25b. 1.5c. 4.0d. 8.07. What is O’Sadnick, Inc.’s dividend payout ratio for 2013?a. 4.16%b. 6.25%c. 25%d. 50%8. What is O’Sadnick, Inc.’s dividend yield for 2013?a. 4.16%b. 6.25%c. 25%d. 50%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 21E
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Use the following information for Questions 6–8.
Information concerning O’Sadnick, Inc., on December 31, 2013, is as follows:
Book value per share . . . . . . . . . . . . . $ 6.00
Dividends per share . . . . . . . . . . . . . . 1.00
Earnings per share . . . . . . . . . . . . . . . 4.00
Par value per share . . . . . . . . . . . . . . . 2.00
Market price per share . . . . . . . . . . . . 16.00
6. What is O’Sadnick, Inc.’s price/earnings ratio for 2013?
a. 0.25
b. 1.5
c. 4.0
d. 8.0
7. What is O’Sadnick, Inc.’s dividend payout ratio for 2013?
a. 4.16%
b. 6.25%
c. 25%
d. 50%
8. What is O’Sadnick, Inc.’s dividend yield for 2013?
a. 4.16%
b. 6.25%
c. 25%
d. 50%

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