ent BYU-Idaho\'sF X Welcome-ACCTG 180 xDChapter 9 Assignment x 0 Mail -peti ezto
ID: 2537702 • Letter: E
Question
ent BYU-Idaho'sF X Welcome-ACCTG 180 xDChapter 9 Assignment x 0 Mail -peti ezto.mheducation.com/hm.tpx During 2014, Desny Corporation reported after-tax net income of $3,890,000. During the year, the number of shares of stock outstanding remained constant at 10,000 of $100 par, 9 percent preferred stock and 400,000 shares of common stock. The company's total stockholders' equity is $20,000,000 at December 31, 2014. Desny Corporation's common stock was selling at $52 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.80 per share to common stockholders. Required a. Compute the eamings per share. (Round your answer to 2 decimal places.) arnings per share b. Compute the book value per share of common stock (Round your answer to 2 decimal places.) Book value per share c. Compute the price-earnings ratio. (Round intermediate calculations and answer to 2 decimal places.) arnings ratio times d. Compute the dividend yield. (Round your answer to 2 dlecimal places. (i.e., .2345 should be entered as 23.45).) nd 6 ) Type here to searchExplanation / Answer
1-
after tax net income
3890000
less preferred dividend
10000*100*9%
90000
net income available to equity shareholders
3800000
no of common stock
400000
EPS = net income available to common stock holders/no of common stock
9.5
2-
book value per share of common stock
total stockholders equity
20000000
less book value of preferred stock
1000000
book value per share of common stock
19000000
no of common stock
400000
book value per share of common stock
19000000/400000
47.5
3-
price earning ratio
market price/eps
5.47
market price
52
eps
9.5
4-
dividend yield = dividend per share/market price
4.8/52
9.2%
1-
after tax net income
3890000
less preferred dividend
10000*100*9%
90000
net income available to equity shareholders
3800000
no of common stock
400000
EPS = net income available to common stock holders/no of common stock
9.5
2-
book value per share of common stock
total stockholders equity
20000000
less book value of preferred stock
1000000
book value per share of common stock
19000000
no of common stock
400000
book value per share of common stock
19000000/400000
47.5
3-
price earning ratio
market price/eps
5.47
market price
52
eps
9.5
4-
dividend yield = dividend per share/market price
4.8/52
9.2%
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