Calculating key stock performance metrics The Castle Company recently repted net profits after taxes of $18.1 million. It has 2 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $119 per share. a. Compute the stock's earnings per share (EPS). Round the answer to two decimal places. per share b. What's the stock's P/E ratio? Round the answer to two decimal places. %24 times c. Determine what the stock's dividend yield would be if it paid $4.28 per share to common stockholders. Round the answer to two decimal places. %

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Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.