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Earnings per share:
The earning per share is the profit available for each common stock. It is profitability measure to evaluate the capability of a company to make profit on each stock invested.
Price-earnings ratio:
The price/earnings ratio reports how much dollars an investor has to invest to earn a dollar from the earnings of the company. It is calculated by dividing the market price of the share to earnings per share of the company.
Dividend payout ratio:
The ratio which indicates amount of dividend paid by a company compare to the total net income available for the common stockholders of the company.
Dividend yield ratio:
The dividend yield ratio is the dividend per share paid by the company expressed in percentage over its market price per share. It indicates how much a company is paying as dividend to the common stockholders of the company on each individual stock.
Book value per share:
The value of each individual share ascertained if total assets of the company were sold at carrying value after the creditors are paid off. It is computed by dividing the total stockholders’ equity with number of common stock outstanding.
Compute the following financial data for this year
1. Earnings per share
2. Price-earnings ratio
3. Dividend payout ratio
4. Dividend yield ratio.
5. Book value per share
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Chapter 14 Solutions
Loose Leaf For Introduction To Managerial Accounting
- You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $500,000 today and annuity payments for the balance. The first payment will be for $270,000 in three months. The payments will increase at 1.4% per quarter and a total of 30 quarterly payments will be made. If you require an EAR of 13%, how much are you being offered for your company? (Do not round intermediate calculations. Round the answer to 2 decimal places, e.g., 32.16.)arrow_forwardCrane top uses the periodic inventory system. For the current month, the beginning inventory consisted of 486 units that cost $66 each. During the month, the company made two purchases: 720 units at $69 each and 355 units at $71 each. Crane also sold 1200 units during the month. Using the FIFO method, what is the amount of cost of goods sold for the month? 79,200 82,224 81,342 83,135arrow_forwardCompute the Total assets turnoverarrow_forward
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