Question

Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2018 2020 2019 773 Current assets 685 917 Other assets 2,417 1,723 1,924 $3,102 $2,841 $2,496 Total assets Current liabilities 816 581 714 Long-term liabilities Stockholders' equity 1,510 1,011 995 860 1,030 922 Total liabilities and stockholders' equity $3,102 $2,841 $2,496 WIPER INC Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales $3,054 300 $2,917 Operating income Interest expense 314 88 69 Net income 203 198 Other data: Average number of common shares outstanding Total dividends paid 41.7 47.1 $52.7 54.0

Answer 1

Ans e)

P/E ratio= market price per share/earnings per share

Where, EPS= Net income/ no. Of shares

= 203/41.7

EPS = 4.868

Given P/E Ratio = 11

11=MPS/4.868

MPS= 11*4.868= 53.55

MPS= $53.55

Ans f)

Dividend per share = Total dividend paid/ no. Of shares

= 54/41.7

DPS =$1.295 per share

Dividend yield ratio

= dividend per share/ price per share

= 1.295/53.55

= 0.02418

= 2.418%

Ans g)Dividend payout ratio

= dividend per share/earnings per share

=1.295/4.868 =0.2660

=0.2660*100= 26.60%

Ans h) No. Of days sales in receivable

= (Accounts Receivable/credit sales )*365

(It is assumed that sales in income statement of $ 3054 are credit sales)

=(313/3054)* 365

= 37.4083 days

e) market price	$ 53.55
f) cash dividend per share	$1.295
Dividend yield	2.418%
g) dividend payout	26.60%
h) no. Of day's sales	37.4083 days