Makers Corp. had additions to retained earnings for the year just ended of $141,

Question

Makers Corp. had additions to retained earnings for the year just ended of $141,000. The firm paid out $189,000 in cash dividends, and it has ending total equity of $4.94 million. The company currently has 120,000 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 $84 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 $4.44 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

a) EPS = (Addition to Retained earnings + Dividends) / No. of shares = (141,000 + 189,000) / 120,000 = $2.75

b) Dividend per share = 189,000 / 120,000 = $1.575

c) Book Value per share = Total Equity / No. of shares = 4,940,000 / 120,000 = $41.17

d) M/B = 84 / 41.17 = 2.04

e) P/E = 84 / 2.75 = 30.55

f) P/S = 84 / (4,440,000 / 120,000) = 2.27

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