The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $45 par value (no change during the year) $6,300,000 Preferred $10 stock, $200 par (no change during the year) 4,000,000 The net income was $648,000 and the declared dividends on the common stock were $35,000 for the current year. The market price of the common stock is $22.40 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 $fill in the blank 1 b. Price-Earnings Ratio fill in the blank 2 c. Dividends per Share $fill in the blank 3 d. Dividend Yield fill in the blank 4 %
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:
| Common stock, $45 par value (no change during the year) | $6,300,000 |
| 4,000,000 |
The net income was $648,000 and the declared dividends on the common stock were $35,000 for the current year. The market price of the common stock is $22.40 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 | $fill in the blank 1 | |
| b. Price-Earnings Ratio | fill in the blank 2 | |
| c. Dividends per Share | $fill in the blank 3 | |
| d. Dividend Yield | fill in the blank 4 | % |
Earnings per share means how much is being earned by each shareholder in the business. Price earnings ratio is ratio between market price per share and earnings per share. Dividend yield means ratio of dividend per share with market price.
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