Use the following information to answer questions 14- 16 Stephens Corp. has 14,000 shares of common stock outstanding. During the year, Stephens has a net income of $56,000 and pays a dividend of...

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Answer 1

Answer #1

Given Information:

Common Stock Outstanding = 14,000 shares

Net Income = $56,000

Dividend Per Share = $2.40 per share

Market Price per share = $48

14 Dividend payout ratio = Dividend per share ÷ Earning per share

Dividend payout ratio = 2.40 ÷ (56000/14000) = 60%

15 Dividend yield ratio = Dividend per share ÷ Price per share

Dividend yield ratio = 2.40÷ 48 = 5%

16 Price earning ratio = Share Price ÷ Earning per share

Price earning ratio = 48 ÷ (56000/14000) = 12

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Answer 2

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Use the following information to answer questions 14- 16 Stephens Corp. has 14,000 shares of common stock outstanding. During the year, Stephens has a net income of $56,000 and pays a dividend of...

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Use the following information to answer questions 14- 16 Stephens Corp. has 14,000 shares of common stock outstanding. During the year, Stephens has a net income of $56,000 and pays a dividend of...