A company has net income of $3,600,000. It has 450,000 weighted- average common shares outstanding and a market value per share of $72. The company's price earnings ratio equals: a. 9.0 b. 12.5 c. 8.0 d. 11.3

A company has net income of $3,600,000. It has 450,000 weighted- average common shares outstanding and a market value per share of $72. The company's price earnings ratio equals: a. 9.0 b. 12.5 c. 8.0 d. 11.3

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Choice correct answer with accounting question

A company has net income of $3,600,000. It has 450,000 weighted-
average common shares outstanding and a market value per share
of $72. The company's price earnings ratio equals:
a. 9.0
b. 12.5
c. 8.0
d. 11.3

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
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