Bundle: Financial & Managerial Accounting, 13th + CengageNOWv2, 2 terms (12 months) Printed Access Card
13th Edition
ISBN: 9781305618909
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 15, Problem 15.21EX
a)
To determine
Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.
Given info: Items from financial statements
Earnings per share on the common stock
b)
To determine
Calculate price earnings ratio.
c)
To determine
Calculate dividend per share of common stock.
d)
To determine
Calculate Dividend yield.
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The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:
Common stock, $20 par (no change during the year)
$10,000,000
Preferred $4 stock, $40 par (no change during the year)
2,500,000
The net income was $1,750,000 and the declared dividends on the common stock were $1,125,000 for the current year. The market price of the common stock is $45 per share.
For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. Round to one decimal place, except for dollar amounts which should be rounded to two decimal places.
a. Earnings per Share
$fill in the blank 1
b. Price-Earnings Ratio
fill in the blank 2
c. Dividends per Share
$fill in the blank 3
d. Dividend Yield
fill in the blank 4
%
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:
Common stock, $10 par value (no change during the year) $3,100,000
Preferred $10 stock, $100 par (no change during the year) $4,000,000
The net income was $1,206,000 and the declared dividends on the common stock were $77,500 for the current year. The market price of the common stock is $20.80 per share.
For the common stock, determine (d) the dividend yield
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:
Common stock, $10 par value (no change during the year) $3,100,000
Preferred $10 stock, $100 par (no change during the year) $4,000,000
The net income was $1,206,000 and the declared dividends on the common stock were $77,500 for the current year. The market price of the common stock is $20.80 per share.
For the common stock, determine (c) the dividends per share
Chapter 15 Solutions
Bundle: Financial & Managerial Accounting, 13th + CengageNOWv2, 2 terms (12 months) Printed Access Card
Ch. 15 - Prob. 1DQCh. 15 - What is the advantage of using comparative...Ch. 15 - A companys current year net income (after income...Ch. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
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