Fackrell Company has provided the following data: Common stock: Shares outstanding 20,000 Market value, December 31 $150,000 Book value, December 31 $80,000 Dividends paid $40,000 Preferred stock, 8%, 100 par $100,000 Net income $100,000 Interest on long-term debt $10,000 The price-earnings ratio is closest to: A) 1.50 B) 1.63 C) 2.50 D) 2.88

Fackrell Company has provided the following data: Common stock: Shares outstanding 20,000 Market value, December 31 $150,000 Book value, December 31 $80,000 Dividends paid $40,000 Preferred stock, 8%, 100 par $100,000 Net income $100,000 Interest on long-term debt $10,000 The price-earnings ratio is closest to: A) 1.50 B) 1.63 C) 2.50 D) 2.88

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
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