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Makers Corp. had additions to retained earnings for the year just ended of $174,

ID: 2767158 • Letter: M

Question

Makers Corp. had additions to retained earnings for the year just ended of $174,000. The firm paid out $190,000 in cash dividends, and it has ending total equity of $4.95 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 $86 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-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16.)

  

  

If the company had sales of $4.69 million, what is the price-sales ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

Makers Corp. had additions to retained earnings for the year just ended of $174,000. The firm paid out $190,000 in cash dividends, and it has ending total equity of $4.95 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.)

  Earnings $  per share

  

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

  

  Dividends $  per share

  

What is the book value per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

  Book value $  per share

  

If the stock currently sells for $86 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.)

  

  Market-to-book ratio times

  

What is the price-earnings ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16.)

  

  Price-earnings ratio times

  

If the company had sales of $4.69 million, what is the price-sales ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  

  Price-sales ratio times

Explanation / Answer

Earning Per Share=Earnings/Shares Outstanding=($174000+$190000)/140000=$2.6

Dividend Per Share=Dividend/Shares Outstanding=$190000/140000=$1.36

Book Value Per Share=Ending Equity/Shares Outstanding=$4950000/140000=$35.36

Market to Book Ratio=Market Price/Book Value Per Share=$86/$35.36=2.43

Price to Earnings=Price Per Share/Earnings Per Share=$86/$2.6=33.08

Price to Sales=Price Per Share/Sales Per Share=$86/$4690000/140000=2.57

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