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SB Hartzog Corporation s most recent balance sheet and income statement appear b

ID: 2381869 • Letter: S

Question

SB Hartzog Corporation s most recent balance sheet and income statement appear below:

Hartzog Corporation's most recent balance sheet and income statement appear below:


MC Qu. 73 The gross margin percentage for Year 2 is...

MC Qu. 74 The earnings per share of common stock for...

MC Qu. 75 The price-earnings ratio for Year 2 is...

MC Qu. 76 The dividend payout ratio for Year 2 is...

MC Qu. 77 The dividend yield ratio for Year 2 is...

[The following information applies to the questions displayed below.]

Hartzog Corporation's most recent balance sheet and income statement appear below:

SB Hartzog Corporation s most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share. The gross margin percentage for Year 2 is The gross margin percentage for Year 2 is closest to: The earnings per share of common stock for The earnings per share of common stock for Year 2 is closest to: The price-earnings ratio for Year 2 is The price-earnings ratio for Year 2 is closest to: The dividend payout ratio for Year 2 is The dividend payout ratio for Year 2 is closest to: The dividend yield ratio for Year 2 is... The dividend yield ratio for Year 2 is closest to:

Explanation / Answer

The gross margin percentage for Year 2 is closest to: = GROSS MARGIN/SALES * 100

= 560/1350 * 100

=41.48%

=41.5%

The earnings per share of common stock for Year 2 is closest to: NET INCOME/NO OF SHARES

=85/(400/2)

=0.425

=0.43

The price-earnings ratio for Year 2 is closest to: PRICE/EPS

=7.04/0.43

=16.37

The dividend payout ratio for Year 2 is closest to: DIVIDEND PAID ON COMMON STOCK/(NET INCOME-DIVIDEND PAID ON PREFERED STOCK)

=60/(85-5)

=0.75

= 75%

The dividend yield ratio for Year 2 is closest to: = annual dividend per share/price per share * 100

= (60/200)/7.04 * 100

=4.26%