5 (of 12) value 10.00 points Rossdale, Inc., had additions to retained earnings

Question

5 (of 12) value 10.00 points Rossdale, Inc., had additions to retained earnings for the year just ended of $643,000. The firm paid out $40.000im cash divdends,and it has ending toa equity or 7.30 malion t the company currenty has 750,000shares of common stock oustandng what are eamings per share? Dwide and round your answers to 2 decimal places, e.g., 32.16.) ak Earnings per Dividends per share Book value per share 0.91 0.05 9.84 If the stock currently sells for $30.80 per share, what is the market-to-book ratio? The pric e.g., 32.16.) e-eamings ratio? (Do not round intermediate calculations and round your answers to 2 deci times times Market-to-book ratio Price-eanings ratio your answer to 2 decimal places, og.32.16.) If total sales were $10 68 million, what is the price-sales ratio? (Do not round intermediate calculations and round times Price-sales ratio Hints eBook & Resources Hint #1 sends some data to Mozilla so that we cen improve your fox aut

Explanation / Answer

Addition to Retained Earnings = Net Income - Dividends
$643,000 = Net Income - $40,000
Net Income = $683,000

Total Equity = $7,380,000
Number of shares outstanding = 750,000

Earnings per share = Net Income / Number of shares outstanding
Earnings per share = $683,000 / 750,000
Earnings per share = $0.91

Dividends per share = Dividends / Number of shares outstanding
Dividends per share = $40,000 / 750,000
Dividends per share = $0.05

Book Value per share = Total Equity / Number of shares outstanding
Book Value per share = $7,380,000 / 750,000
Book Value per share = $9.84

Market-to-book Ratio = Market Value per share / Book Value per share
Market-to-book Ratio = $30.80 / $9.84
Market-to-book Ratio = 3.13 times

Price-earnings Ratio = Market Value per share / Earnings per share
Price-earnings Ratio = $30.80 / $0.91
Price-earnings Ratio = 33.85 times

Total Sales = $10,680,000

Sales per share = Total Sales / Number of shares outstanding
Sales per share = $10,680,000 / 750,000
Sales per share = $14.24

Price-sales Ratio = Market Value per share / Sales per share
Price-sales Ratio = $30.80 / $14.24
Price-sales Ratio = 2.16 times

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