During Year 3, Blue Ridge Corporation reported after-tax net income of $4,150,000. During the year, the number of shares of stock outstanding remained constant at 15,000 of $100 par, 9 percent preferred stock and 400,000 shares of common stock. The company's total stockholders' equity is $20,000,000 at December 31, Year 3. Blue Ridge Corporation's common stock was selling at $80 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.80 per share to common stockholders. Required a. Compute the earnings per share. (Round your answer to 2 decimal places.) b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.) c. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal placer)
During Year 3, Blue Ridge Corporation reported after-tax net income of $4,150,000. During the year, the number of shares of stock outstanding remained constant at 15,000 of $100 par, 9 percent preferred stock and 400,000 shares of common stock. The company's total stockholders' equity is $20,000,000 at December 31, Year 3. Blue Ridge Corporation's common stock was selling at $80 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.80 per share to common stockholders. Required a. Compute the earnings per share. (Round your answer to 2 decimal places.) b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.) c. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal placer)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During Year 3, Blue Ridge Corporation reported after-tax net income of $4,150,000. During the year, the
number of shares of stock outstanding remained constant at 15,000 of $100 par, 9 percent preferred stock
and 400,000 shares of common stock. The company's total stockholders' equity is $20,000,000 at
December 31, Year 3. Blue Ridge Corporation's common stock was selling at $80 per share at the end of
its fiscal year. All dividends for the year have been paid, including $4.80 per share to common
stockholders.
Required
a. Compute the earnings per share. (Round your answer to 2 decimal places.)
b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.)
c. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal
places.)
d. Compute the dividend yield. (Round your percentage answer to 2 decimal places. (i.e., 0.2345 should
be entered as 23.45).)
Earnings per share
b. Book value per share
a.
C. Price-earnings ratio
Dividend yield
d.
times
%
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