Question

alte cop Earnings per Share, Price Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $30 par value (no change during the year) $5,100,000 Preferred $10 stock, $200 par (no change during the year) 4,000,000 The net income was $506,000 and the declared dividends on the common stock were $42,500 for the current year. The market price of the common stock is $13.50 per share. For the common stock, determine (a) the earnings per share, (b) the price earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places a. Earnings per Shares b. Price-Earnings Ratio c. Dividends per Share $ d. Dividend Yield 3 ore Check My Work uses remaining Assignment Score: 55.68% Email Instructor Save and Exit Submit Assignment for Grading

Answer 1

Computation of Earnings available to Common Stock holders Sno Particulars Computation Amount 1 Net Income Given 506000 2 Preference dividend [(400000/200)*10] 20000 Earnings available to 3 common stock holders 486000 (1-2) a.Earnings per share= Earnings available to common stock holders No: of Common stock holders 486000 170000 2.86 b.Price earnings ratio= Currrent price of common stock Earnings per share 13.50 2.86 4.72

c.Dividend per shares - Dividend amount No: of Common stock holders Dividend amount 42500 170000 0.25 d.Dividend yield= *100 Dividend per share Currrent price of common stock *100 0.25 13.50 1.8519