Sunset Valley Inc. reported a net income of $2,450,000 in 2023. The company paid $520,000 in dividends to common shareholders. The weighted average number of shares outstanding during the year was 700,000. Sunset Valley's stock is currently trading at $40 per share. What is Sunset Valley Inc.'s price-earnings (P/E) ratio? a. 8.1 times b. 11.4 times c. 16.0 times d. 12.5 times

Sunset Valley Inc. reported a net income of $2,450,000 in 2023. The company paid $520,000 in dividends to common shareholders. The weighted average number of shares outstanding during the year was 700,000. Sunset Valley's stock is currently trading at $40 per share. What is Sunset Valley Inc.'s price-earnings (P/E) ratio? a. 8.1 times b. 11.4 times c. 16.0 times d. 12.5 times

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.)
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
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Given the following year-end information for Somerset Corporation, compute its basic earnings per share. Net income, 13,000 Preferred dividends declared, 4,000 Weighted average common shares for the year, 4,500
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The Farley Corporation reported earnings per share (EPS) of $10 in 2022. It paid dividends of $2.50 per share during the year. The current market price per share is $65, and the book value per share is $48. Question: What is Farley Corporation's price-earnings (P/E) ratio?