The following information was taken from the financial statements of Tolbert Inc

Question

The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $35 par value (no change during the year) Preferred $10 stock, $100 par (no change during the year) The net income was $740,000 and the declared dividends on the common stock were 55,00ofor the current year. The market price of the common stoc s , .00 e 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 b. Price-Earnings Ratio c. Dividends per Share d. Dividend Yield $7,700,000 3,000,000 are

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Net Income              740,000.00 Less Preference Dividend = 10*3000,000/100            (300,000.00) Earnings available for equity shareholders              440,000.00 No of equity shares =7700,000/35              220,000.00 Earning per share = 440,000/220,000                           2.00 b) Market price per share                         17.00 Earning per share                           2.00 PE Ratio =17/2                           8.50 c) Total dividends                 55,000.00 No of common Stock              220,000.00 Dividend per share = 55,000/220,000                           0.25 d) Dividend Yield = .25/17 1.47%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.