Assume you are given the following abbreviated financial statement. ($ in millions) $150.0 $200.0 $350.0 $100.0 $ 50.0 $200.0 $350.0 میزار دو Current assets Fixed and other assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Common shares outstanding Total revenues Total operating costs and expenses Interest expense Income taxes Net profits Dividends paid to common stockholders 10-million shares $500.0 $435.0 $10.0 $ 20.0 35.0 $ 10.0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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please complete the solution, please all of it  (the rest) and thanks Sir 

Step 1: Introduction
As per our policy,in case of multiple questions,we are allowed to answer the first one. Hence answering first
question. To get solution for second question, please upload it again.
*******
**********
PE Ratio = Market price /EPS
Step 2: Calculation
1.Calculation of EPS :
Profit after taxes = $9.60 million ($80*12%)
No.of shares = 6 million
EPS= profit after taxes/no of shares
= $ 9.60/6
= $1.60 per share
2. Calculation of P/E ratio
Market price per shares = $30
P/E ratio Market price / EPS
= $30/$1.60
= 18.75 times
3.Calculation of Dividend Yield:
Eps = $1.60
Dividend pay out ratio = 35%
Dividend per share = $0.56
Dividend Yield = $0.56/$30 *100
= 1.87%
Solution
1) EPS = $1.60 per share
2) P/E Ratio = 18.75 times
3)Dividend Yield = 1.87%
*****************************************
Transcribed Image Text:Step 1: Introduction As per our policy,in case of multiple questions,we are allowed to answer the first one. Hence answering first question. To get solution for second question, please upload it again. ******* ********** PE Ratio = Market price /EPS Step 2: Calculation 1.Calculation of EPS : Profit after taxes = $9.60 million ($80*12%) No.of shares = 6 million EPS= profit after taxes/no of shares = $ 9.60/6 = $1.60 per share 2. Calculation of P/E ratio Market price per shares = $30 P/E ratio Market price / EPS = $30/$1.60 = 18.75 times 3.Calculation of Dividend Yield: Eps = $1.60 Dividend pay out ratio = 35% Dividend per share = $0.56 Dividend Yield = $0.56/$30 *100 = 1.87% Solution 1) EPS = $1.60 per share 2) P/E Ratio = 18.75 times 3)Dividend Yield = 1.87% *****************************************
Find the EPS, P/E ratio, and dividend yield of a company that has six million shares of common stock outstanding (the shares trade in
the market at $30), earns 12% after taxes on annual sales of $80 million, and has a dividend payout ratio of 35%.
LG5 P7.11 Find the EPS, P/E ratio, and dividend yield of a company that has six million shares of
common stock outstanding (the shares trade in the market at $30), earns 12% after taxes
on annual sales of $80 million, and has a dividend payout ratio of 35%.
equity.
Transcribed Image Text: LG5 P7.11 Find the EPS, P/E ratio, and dividend yield of a company that has six million shares of common stock outstanding (the shares trade in the
market at $30), earns 12% after taxes on annual sales of $80 million, and has a dividend payout ratio of 35%.
LG5 P7.1
Assume you are given the following abbreviated financial statement.
($ in millions)
$150.0
$200.0
$350.0
$100.0
$ 50.0
چیزا یه حال
نقل
Current assets
Fixed and other assets
Total assets
Current liabilities
Long-term debt
Stockholders' equity
Total liabilities and equities
Common shares outstanding
Total revenues
Total operating costs and expenses
Interest expense
Income taxes
Net profits
Dividends paid to common stockholders
$200.0
$350.0
10 million shares
$500.0
$435.0
$10.0
$ 20.0
$ 35.0
$ 10.0
Transcribed Image Text:Find the EPS, P/E ratio, and dividend yield of a company that has six million shares of common stock outstanding (the shares trade in the market at $30), earns 12% after taxes on annual sales of $80 million, and has a dividend payout ratio of 35%. LG5 P7.11 Find the EPS, P/E ratio, and dividend yield of a company that has six million shares of common stock outstanding (the shares trade in the market at $30), earns 12% after taxes on annual sales of $80 million, and has a dividend payout ratio of 35%. equity. Transcribed Image Text: LG5 P7.11 Find the EPS, P/E ratio, and dividend yield of a company that has six million shares of common stock outstanding (the shares trade in the market at $30), earns 12% after taxes on annual sales of $80 million, and has a dividend payout ratio of 35%. LG5 P7.1 Assume you are given the following abbreviated financial statement. ($ in millions) $150.0 $200.0 $350.0 $100.0 $ 50.0 چیزا یه حال نقل Current assets Fixed and other assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Common shares outstanding Total revenues Total operating costs and expenses Interest expense Income taxes Net profits Dividends paid to common stockholders $200.0 $350.0 10 million shares $500.0 $435.0 $10.0 $ 20.0 $ 35.0 $ 10.0
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