General accounting question A company's stock is currently trading at $72 per share and has a P/Eratio of 12. If the company's dividend payout ratio is 40%, what isthe company's earnings per share?

Step 1: Definition of Earnings Per Share (EPS)Earnings per share (EPS) is a measure of a company's…

Answered: A company's stock is currently trading…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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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.)
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 market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
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A company pays an annual dividend of $3 per share, and the current stock price is $50. What is the dividend yield?
A company currently issues dividends at a rate of $1.25 per share. It has cost of equity of 6% and a dividend growth rate of 1.5%. With this data, calculate the current value of the company's stock price.
The Farley Corporation reported earnings per share (EPS) of $10 in 2022. It paid dividends of $2.50 per share during the year. The current market price per share is $65, and the book value per share is $48. Question: What is Farley Corporation's price-earnings (P/E) ratio?
A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year. The company's cost of equity is 11%. What is the expected annual growth rate of the company's dividends? O A. 11.04% O B. 16.56% OC. 5.52% O D. 22.08%
A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year. The company's cost of equity is 11%. What is the expected annual growth rate of the company's dividends? O A. 11.04% O B. 16.56% O C. 5.52% O D. 22.08%
Answer
A company has a return on equity of 18%, and its total equity is $820.5. What is the net income?
General accounting

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A company's stock is currently trading at $72 per share and has a P/E ratio of 12. If the company's dividend payout ratio is 40%, what is the company's earnings per share?