Question

ter 3 i Saved Dove, Inc., had additions to retained earnings for the year just ended of $637,000. The firm paid out $70,000 in cash dividends, and it has ending total equity of $7.32 million. a. If the company currently has 690,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If the stock currently sells for $30.20 per share, what is the market-to-book ratio? The price-earnings ratio? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. If total sales were $10.62 million, what is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Earnings per share а. Dividends per share Book value per share Market-to-book ratio ь. times Price-earnings ratio times Price-sales ratio C. times

Answer 1

a. Earnings =Retained earnings+Cash Dividends =637000+70000=707000
earnings Per Share =707000/690000=1.02
Dividend per share =70000/690000 =0.10
Book Value per share =Total Equity/Number of shares =7320000/690000=10.61

b.Market To Book Ratio =Share Price/Book Value per share =30.20/10.61 =2.85 (Not rounding intermediate calculation)
Price -Earnings Ratio =30.20/(1.02) =29.47 (Not rounding intermediate calculation)

c. Price to Sales Ratio =(Share Price)./(Sales/Number of Shares) =30.20/(10620000/690000)=1.96