Rossdale, Inc., had additions to retained earnings for the year just ended of $6
ID: 2771902 • Letter: R
Question
Rossdale, Inc., had additions to retained earnings for the year just ended of $637,000. The firm paid out $70,000 in cash dividends, and it has ending total equity of $7.32 million.
If the company currently has 690,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share?
If the stock currently sells for $30.20 per share, what is the market-to-book ratio? The price-earnings ratio?
If total sales were $10.62 million, what is the price-sales ratio?
Rossdale, Inc., had additions to retained earnings for the year just ended of $637,000. The firm paid out $70,000 in cash dividends, and it has ending total equity of $7.32 million.
Explanation / Answer
Rossdale, Inc., had additions to retained earnings for the year just ended of $637,000. The firm paid out $70,000 in cash dividends, and it has ending total equity of $7.32 million.
If the company currently has 690,000 shares of common stock outstanding, what are earnings per share?
Earnings per share = (additions to retained earnings + cash dividends)/No of common stock outstanding
Earnings per share = (637000+70000)/690000
Earnings per share = $ 1.02
Dividends per share?
Dividends per share = cash dividends/No of common stock outstanding
Dividends per share = 70000/690000
Dividends per share = 0.10
What is book value per share?
Book value per share = ending total equity/No of common stock outstanding
Book value per share = 7320000/690000
Book value per share = $ 10.61
If the stock currently sells for $30.20 per share, what is the market-to-book ratio? The price-earnings ratio?
Market-to-book ratio =Market value per share/Book value per share
Market-to-book ratio = 30.20/10.61
Market-to-book ratio = 2.85
Price-earnings ratio = Market value per share/Earnings per share
Price-earnings ratio = 30.20/1.02
Price-earnings ratio = 29.61
If total sales were $10.62 million, what is the price-sales ratio?
Price-sales ratio = Market Value/total sales
Price-sales ratio = 30.20*690000/10620000
Price-sales ratio = 1.96
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.