ABC Company had addition to retained earnings for the current fiscal year just ended of $395,000. The firm paid out $195,000 in cash dividend, and it has ending total equity of $5.3 million. The company currently has 170,000 shares of common stock outstanding. Please answer the following questions:  What are earnings per share (E/PS)?  Dividends per share? Book value of share? If the stock currently sells for $64 per share, what is the market-to-book ratio? The price to earnings ratio (P/E)? The company had sales of $5.15 million, what is the price to sales ratio (P/S)? Finally, explain the implication of P/E ratio for different types of investors.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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ABC Company had addition to retained earnings for the current fiscal year just ended of $395,000. The firm paid out $195,000 in cash dividend, and it has ending total equity of $5.3 million. The company currently has 170,000 shares of common stock outstanding. Please answer the following questions: 

  1. What are earnings per share (E/PS)? 
  2. Dividends per share?
  3. Book value of share?
  4. If the stock currently sells for $64 per share, what is the market-to-book ratio?
  5. The price to earnings ratio (P/E)?
  6. The company had sales of $5.15 million, what is the price to sales ratio (P/S)?
  7. Finally, explain the implication of P/E ratio for different types of investors.

 

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