The Morton Company recently reported net profits after taxes of $19 million. It

Question

The Morton Company recently reported net profits after taxes of $19 million. It has 1.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $248 per share. Compute the stock's earnings per share (EPS). Round the answer to two decimal places. $ ____ per share What's the stock's P/E ratio? Round the answer to two decimal places. $ ____ times Determine what the stock's dividend yield would be if it paid $13.39 per share to common stockholders. Round the answer to two decimal places. ___ %

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Net profits after taxes      19,000,000.00 Preferred Dividends      (1,000,000.00) Earnings available for equity shareholders      18,000,000.00 No of shares outstanding        1,500,000.00 Earnings per share                      12.00 Price per share                    248.00 stock's P/E ratio = 248 / 12                      20.67 Dividend per share                      13.39 stock's dividend yield = 13.39/248 5.40%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.