Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Manitou Corp. had additions to retained earnings for the year just ended of $174

ID: 2333839 • Letter: M

Question

Manitou Corp. had additions to retained earnings for the year just ended of $174,000. The firm paid out $190,000 in cash dividends, and it has ending total equity of $5.45 million. The company currently has 140,000 shares of common stock outstanding What are the earnings per share? (Round the final answer to 2 decimal places.) Earnings per share What are the dividends per share? (Round the final answer to 2 decimal places.) per share What is the book value per share? (Round the final answer to 2 decimal places.) Dividends Book value per share If the stock currently sells for $86 per share, what is the market-to-book ratio? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Market-to-book ratio imes What is the price-earnings ratio? (Round the intermediate calculations to 2 decimal places. Round the final answer to 2 decimal places.) Price-earnings ratio imes If the company had sales of $4.69 million, what is the price-sales ratio? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Price-sales ratio imes

Explanation / Answer

Net Income

= Additions to retained earnings + Dividend Paid

= $174,000 + 190,000

= $364,000

Earnings Per Share

= Net Income / Number of common shares

= $364,000 / 140,000 shares

= $2.60 per share

Dividends Per Share

= Dividend / Number of common shares

= $190,000 / 140,000 shares

= $1.36 per share

Book Value per share

= Book Value / Number of common shares

= $54,50,000 / 140,000 shares

= $38.93 per share

Market to Book Ratio

= Share Price / Book Value per share

= $86 / 38.93

= 2.21 Times

Price Earnings Ratio

= Share price / Earnings per share

= $86 / 2.60

= 33.08 Times

Price-Sales Ratio

= Sales / Number of common shares

= $46,90,000 / 140,000 shares

= 33.50 Times

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote