The Gizmo, Inc has just announced year-end results as follows: Value of company assets $12,960,000 Value...

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The Gizmo, Inc has just announced year-end results as follows: Value of company assets $12,960,000 Value of company liabiliti

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Answer 1

Answer #1

Answer of Part a:

Shareholder Equity = Assets – Liabilities
Shareholder Equity = $12,960,000 - $6,183,913
Shareholder Equity = $6,776,087

Book Value per share = Shareholder Equity / Number of shares of common stock outstanding
Book Value per share = $6,776,087 / 865,642
Book Value per Share = $7.83

Answer of Part b:

Earnings per share = (Net Income - Preferred Dividend) / Number of Share of common stock outstanding
Earnings per share = ($1,864,805 - $459,939) / 865,642
Earnings per share = $1,404,866 / 865,642
Earnings per share = $1.62

Answer of Part c:

Dividends per share = Common stock dividends / Number of shares of common stock outstanding
Dividends per share = $253,098 / 865,642
Dividends per share = $0.2924

Dividend Yield = Dividends per share / Market Price per share
Dividend Yield = $0.2924 / $46.69
Dividend Yield = 0.0063 or 0.63%

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Answer 2

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The Gizmo, Inc has just announced year-end results as follows: Value of company assets $12,960,000 Value...

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