Selected financial information about Backpacking Resources, Inc., is as follows: Total assets Total liabilities Total preferred stock Total annual preferred stock dividends Net profits after-tax $25,000,000 $10,000,000 $2,000,000 $180,000 $1,000,000 Number of shares of common stock outstanding 1,000,000 shares Current market price of common stock Annual common stock dividends $48.00 a share $2.40 a share Using the company's financial information, compute the following: a. Dividend yield. Round the answer to two decimal places. b. Book value per share. Round your answer to the nearest cent. c. Earnings per share. Round your answer to the nearest cent. d. P/E ratio. Round the answer to two decimal places.

Selected financial information about Backpacking Resources, Inc., is as follows: Total assets Total liabilities Total preferred stock Total annual preferred stock dividends Net profits after-tax $25,000,000 $10,000,000 $2,000,000 $180,000 $1,000,000 Number of shares of common stock outstanding 1,000,000 shares Current market price of common stock Annual common stock dividends $48.00 a share $2.40 a share Using the company's financial information, compute the following: a. Dividend yield. Round the answer to two decimal places. b. Book value per share. Round your answer to the nearest cent. c. Earnings per share. Round your answer to the nearest cent. d. P/E ratio. Round the answer to two decimal places.

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.)
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
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