My Subscriptions / Courses/ ACC2120B01-Acc212 fall 2017/ Ch 14: Analysis and int

Question

My Subscriptions / Courses/ ACC2120B01-Acc212 fall 2017/ Ch 14: Analysis and interpretation of Financia QUESTION 3 Partalily correct 0.33 points out of 1,00 P Rag question Financial Ratios for Common Stockholders Henshue $1.84 for the year. During the year. Henshue paid dividends of $0.91 per share. At year end, the current market price of the stock was $35.15 per share Corporation has only common stock outstanding. The firm reported earnings per share of Calculate the following:(Round to 1 decimal point a. Year-end price-earnings ratio 19.1 b. Dividend yield 38.6 % c. Dividend payout ratio 21 % Check You have correctly selected 1 Partially correct Marks for this submission: 0.33/1.00

Explanation / Answer

Answer a.

Year-end Price Earnings Ratio = Year-end Price per share / Earnings per share
Year-end Price Earnings Ratio = $35.15 / $1.84
Year-end Price Earnings Ratio = 19.1

Answer b.

Dividend Yield = Dividend per share / Year-end Price per share
Dividend Yield = $0.91 / $35.15
Dividend Yield = 2.6%

Answer c.

Dividend Payout Ratio = Dividend per share / Earnings per share
Dividend Payout Ratio = $0.91 / $1.84
Dividend Payout Ratio = 0.5

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