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