That Wich Corp. had additions to retained earnings for the year just ended of $2

Question

That Wich Corp. had additions to retained earnings for the year just ended of $290,000. The firm paid out $193,000 in cash dividends, and it has ending total equity of $4.98 million. The company currently has 140,000 shares of common stock outstanding.

1. What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

2. What are dividends per share? (Round your answer to 2 decimal places. (e.g., 32.16))

3. What is the book value per share? (Round your answer to 2 decimal places. (e.g., 32.16))

4. If the stock currently sells for $77 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

5. What is the price

That Wich Corp. had additions to retained earnings for the year just ended of $290,000. The firm paid out $193,000 in cash dividends, and it has ending total equity of $4.98 million. The company currently has 140,000 shares of common stock outstanding.

1. What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

2. What are dividends per share? (Round your answer to 2 decimal places. (e.g., 32.16))

3. What is the book value per share? (Round your answer to 2 decimal places. (e.g., 32.16))

4. If the stock currently sells for $77 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

5. What is the price

Explanation / Answer

1.

Earnings Per share=(290000+193000)/140000=3.45

2.

Dividend per share =193000/140000=1.378571

3.

Book Value per share =4980000/140000=35.57143

4.

Market/Book Value =77/35.57143=2.164659

5.

P/E ratio =77/3.45=22.31884

6.

Price to sale =Price per share/Sales per share =77/(4690000/140000)= 2.298507

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