Thompson Industries has the following financial data: . . Common stock outstanding: 25,000 shares Book value per share: $40.00 ⚫ Market value per share: $50.00 . Net income for the year: $200,000 • Interest expense on bonds: $25,000 Dividends paid per share: $2.00 ⚫ Tax rate: 25% • What is the company's price-earnings ratio at the end of the year? a. 6.25 b. 8.00 c. 5.00 d. 4.00

Thompson Industries has the following financial data: . . Common stock outstanding: 25,000 shares Book value per share: $40.00 ⚫ Market value per share: $50.00 . Net income for the year: $200,000 • Interest expense on bonds: $25,000 Dividends paid per share: $2.00 ⚫ Tax rate: 25% • What is the company's price-earnings ratio at the end of the year? a. 6.25 b. 8.00 c. 5.00 d. 4.00

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.)
Five measures of solvency or profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Income before income tax was 3,000,000, and income taxes were 1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled 1,200,000. The common stock was selling for 32 per share at the end of the year. Determine each of the following: (a) times interest earned ratio, (b) earnings per share on common stock, (c) price-earnings ratio, (d) dividends per share of common stock, and (e) dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.
The following information is available for Jase Company: Market price per share of common stock $25.00 Earnings per share on common stock 1.25 Which of the following statements is correct? a. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year. b. The market price per share and the earnings per share are not statistically related to each other. c. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. d. The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year.
Song Corp's stock price at the end of last year was $28.75 and its earnings per share for the year were $1.30. What was its P/E ratio? a. 27.64 b. 22.12 c. 17.69 d. 23.00 e. 18.80
The following information is available for Jase Company: Line Item Description Amount Market price per share of common stock $25.00 Earnings per share on common stock $1.25 Which of the following statements is true? a.The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. b.The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year. c.The market price per share and the earnings per share are not statistically related to each other. d.The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year
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Ames, Inc., has a current stock price of $58. For the past year, the company had a net income of $8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. a. What are earnings per share (EPS)? b. What is the Price-earnings ratio? c. What is the Price sales ratio? d. What is Book value per share?
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 9% Preferred $10 stock, $100 par Common stock, $12 par Income before income tax expense was $226,800, and income taxes were $34,400 for the current year. Cash dividends paid on common stock during the current year totaled $36,400. The common stock was selling for $100 per share at the end of the year. $900,000 104,000 218,400 Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield 2.8 X times 1.13 X %
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The comparative Financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. InstructionsDetermine the following measures for 20Y2. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent.1. Working capital2. Current ratio 3- Quick ratio4. Accounts receivable turnover5. Number of days' sales in receivables6. Inventory turnover7. Number of days' sales in inventory8. Ratio of fixed assets to long-term liabilities 9- Ratio of liabilities to stockholders' equity10. Times interest earned11. Asset turnover12. Return on total assets13. Return on stockholders' equity14. Return on common stockholders' equity15. Earnings per share on common stock16. Price-earnings ratio17. Dividends per share of common stock18. Dividend yield
Franklin Co. reported the following year-end data: net income of $220,000; annual cash dividends per share of $3; market price per (common) share of $150; and earnings per share of $10. Compute the (a) price-earnings ratio and (b) dividend yield.
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