During Year 3, Thornton Corporation reported after-tax net income of $3,635,000. During the year, the number of shares of stock outstanding remained constant at 9,520 of $100 par, 8 percent preferred stock and 395,000 shares of common stock. The company’s total stockholders’ equity is $20,000,000 at December 31, Year 3. Thornton Corporation’s common stock was selling at $54 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.60 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).)
During Year 3, Thornton Corporation reported after-tax net income of $3,635,000. During the year, the number of shares of stock outstanding remained constant at 9,520 of $100 par, 8 percent
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).)
Common Stock:
The ownership fund of a company is recorded by the name of the common stock in the balance sheet of the company. It is the value of the funds that owners have invested at a specific point in time.
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