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Exercise 9-12 Ratio analysis LO 9-5 During 2018, Vernon Corporation reported after-tax net income of $3,585,000. During the y

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Answer #1
Vernon corporation
EPS = ( Net income - Pref. dividend ) / No. of shares outstanding
( 3585000 - [ 998000* 10 % ]) / 399000
$ 8.735 per share
Book value per share = Total Equity - Pref. equity / No. of shares outstanding
( 19900000 - 998000 ) / 399000
$ 47.37 per share
Price earnings ratio = Current share price/ EPS
54/8.735 =
6.18 times
Dividend yield = Annual Dividend / share price
4.7/54 = 8.7 %
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