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

1) Calculation of Earnings per share :

EPS = Earnings available to common stock holders / Number of common stock

= ($141,000 + $189,000) / 120,000

= $2.75 per share

2) Calculation of Dividend per share :

DPS = Dividends paid to common stock holders / Number of common stock

= $189,000 / 120,000

= $1.575 per share

3) Calculation of book value per share :

Book value per share = Total value of equity / Number of common stock

= $4,940,000 / 120,000

= $41.17 per share

4) Market to book ratio :

Market to book ratio = Market price per share / Book value per share

= $84 / $41.17

= 2.04

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