Problem 4 (Profitability Ratios) Gonzales is analyzing the earnings performance of the Bobadilla Transport Corporation. He has gathered the following data from Bobadilla's financial statements and form a report of the closing market prices of shares: Profit for 2019 = 743,000 Preference dividends declared during 2019 = 60,000 Ordinary dividends declared December 31, 2019 = 620,000 Number of Bobadilla ordinary shares outstanding: January 1, 2019 = 1,100,000 shs. December 31, 2019 = 1,300,000 shs. Market price per ordinary share on December 31, 2019 = P15 Calculate the following ratios relating to the Bobadilla share: 1. Basic earnings per ordinary share 2. Price-earnings ratio 3. Dividend yield on ordinary share
Problem 4 (Profitability Ratios)
Gonzales is analyzing the earnings performance of the Bobadilla Transport Corporation. He has gathered the following data from Bobadilla's financial statements and form a report of the closing market prices of shares:
Profit for 2019 = 743,000
Preference dividends declared during 2019 = 60,000
Ordinary dividends declared December 31, 2019 = 620,000
Number of Bobadilla ordinary shares outstanding:
January 1, 2019 = 1,100,000 shs.
December 31, 2019 = 1,300,000 shs.
Market price per ordinary share on December 31, 2019 = P15
Calculate the following ratios relating to the Bobadilla share:
1. Basic earnings per ordinary share
2. Price-earnings ratio
3. Dividend yield on ordinary share
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