That Wich Corp. had additions to retained earnings for the year just ended of $2
ID: 2648150 • Letter: T
Question
That Wich Corp. had additions to retained earnings for the year just ended of $298,000. The firm paid out $178,000 in cash dividends, and it has ending total equity of $4.83 million. The company currently has 140,000 shares of common stock outstanding.
What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
If the stock currently sells for $70 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))
What is the price
That Wich Corp. had additions to retained earnings for the year just ended of $298,000. The firm paid out $178,000 in cash dividends, and it has ending total equity of $4.83 million. The company currently has 140,000 shares of common stock outstanding.
Explanation / Answer
Calculation of Earnings Per Share
We know that
Net Income= Addition to retained earnings + Dividends
Net Income= $298000+$178000
Net Income= $476000
Earnings Per Share (EPS)= Net Income/ No of shares outstanding
EPS = $476000/140000
EPS= $3.4 per share
Calculation of Dividend Per Share
Dividend Per Share (DPS) = Total dividend/ No of shares outstanding
DPS= $178000/140000
DPS= $1.27 per share
Calculation of Book value per share
Book value per share= Total Equity/ No of shares outstanding
Book value per share= $4830000/140000
Book value per share= $34.5 per share
Calculation of The Market-to-book ratio
Market
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