The financial statements for Castile Products, Inc., are given below: Castile Pr

Question

The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc. Balance Sheet December 31 Assets Current assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 22,000 200,000 400,000 10,000 Total current assets Property and equipment, net 632,000 860,000 Total assets $1,492,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 8% 260,000 380,000 640,000 $ 100,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 752,000 852,000 $1,492,000 Total stockholders' equity Total liabilities and equity

Explanation / Answer

1)Earning per share= net income/no of shareholders
=300720/10,000=$30.072

2)dividend payout ratio= dividend/net income

=(10000*3.95)/300720=13.14%

3)dividend yield ratio=dividend per share/current share
=3.95/57=6.93%

4) price earning ratio= market price per share/EPS
=57/30.072=1.9

5)book value per share= equity/no of shares
=852,000/10,000=$85.2

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