Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $25 par value (no change during the year) $6,750,000 Preferred $4 stock, $200 par (no change during the year) 8,000,000 The net income was $862,000 and the declared dividends on the common stock were $67,500 for the current year. The market price of the common stock is $22.10 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share b. Price-Earnings Ratio c. Dividends per Share d. Dividend Yield %

Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $25 par value (no change during the year) $6,750,000 Preferred $4 stock, $200 par (no change during the year) 8,000,000 The net income was $862,000 and the declared dividends on the common stock were $67,500 for the current year. The market price of the common stock is $22.10 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share b. Price-Earnings Ratio c. Dividends per Share d. Dividend Yield %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1    20Y2    20Y1 Retained earnings, January 1 $3,112,575 $2,638,225 Net income 700,800 540,300 Dividends: On preferred stock (11,200) (11,200) On common stock (54,750) (54,750) Retained earnings, December 31 $3,747,425 $3,112,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1   20Y2   20Y1 Sales $3,863,160 $3,559,340 Cost of merchandise sold 1,516,210 1,394,910 Gross profit $2,346,950 $2,164,430 Selling expenses $731,580 $918,970 Administrative expenses 623,190 539,710 Total operating expenses $1,354,770 $1,458,680 Income from operations $992,180 $705,750 Other revenue and expense:…
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1    20Y2    20Y1 Retained earnings, January 1 $3,112,575 $2,638,225 Net income 700,800 540,300 Dividends: On preferred stock (11,200) (11,200) On common stock (54,750) (54,750) Retained earnings, December 31 $3,747,425 $3,112,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1   20Y2   20Y1 Sales $3,863,160 $3,559,340 Cost of merchandise sold 1,516,210 1,394,910 Gross profit $2,346,950 $2,164,430 Selling expenses $731,580 $918,970 Administrative expenses 623,190 539,710 Total operating expenses $1,354,770 $1,458,680 Income from operations $992,180 $705,750 Other revenue and expense:…
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,704,000 $3,264,000 Net income 600,000 550,000 Dividends:     On preferred stock (10,000) (10,000)     On common stock (100,000) (100,000) Retained earnings, December 31 $4,194,000 $3,704,000 Marshall Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $10,850,000 $10,000,000 Cost of merchandise sold 6,000,000 5,450,000 Gross profit $4,850,000 $4,550,000 Selling expenses $2,170,000 $2,000,000 Administrative expenses 1,627,500 1,500,000 Total operating expenses $3,797,500 $3,500,000 Income from operations $1,052,500 $1,050,000 Other revenue and expense:     Other revenue…
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,112,575 $2,638,225 Net income 700,800 540,300 Dividends: On preferred stock (11,200) (11,200) On common stock (54,750) (54,750) Retained earnings, December 31 $3,747,425 $3,112,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,863,160 $3,559,340 Cost of merchandise sold 1,516,210 1,394,910 Gross profit $2,346,950 $2,164,430 Selling expenses $731,580 $918,970 Administrative expenses 623,190 539,710 Total operating expenses $1,354,770 $1,458,680 Income from operations $992,180 $705,750 Other revenue and expense:…
Earnings Per Share Financial statement data for the years ended December 31 for Brown Cow Inc. follow: 20Y6 20Y5 Net income $4,243,200 $2,855,360 Preferred dividends $64,000 $64,000 Average number of common shares outstanding 128,000 shares 104,000 shares a. Determine the earnings per share for 20Y6 and 20Y5. Round your answers to two decimal places. 20Y6 per share 20Y5 per share b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable or unfavorable trend? %24 %24
The following information is available for Jase Company: Market price per share of common stock $25.00 Earnings per share on common stock 1.25 Which of the following statements is correct? a. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year. b. The market price per share and the earnings per share are not statistically related to each other. c. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. d. The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year.
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The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,112,575 $2,638,225 Net income 700,800 540,300 Dividends: On preferred stock (11,200) (11,200) On common stock (54,750) (54,750) Retained earnings, December 31 $3,747,425 $3,112,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,863,160 $3,559,340 Cost of merchandise sold 1,516,210 1,394,910 Gross profit $2,346,950 $2,164,430 Selling expenses $731,580 $918,970 Administrative expenses 623,190 539,710 Total operating expenses $1,354,770 $1,458,680 Income from operations $992,180 $705,750 Other revenue and expense:…
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Financial statement data for the years ended December 31 for Black Bull Inc. follow: 20Y6 20Y5Net income $2,485,700 $1,538,000Preferred dividends $50,000 $50,000Average number of common shares outstanding 115,000 shares 80,000 sharesa. Determine the earnings per share for 20Y6 and 20Y5.b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable or unfavorable trend?