Question

Use the following information to answer questions 53-55. During 2018, Amazing Corp. reported after-tax net income of $900,000 and paid $175,000 in common dividends. The weighted average number of common shares issued in 2018 was 200,000. There are no preferred shares issued. At year end, Amazing's common shares are selling for $81 per share on the Toronto Stock Exchange.

Amazing's basic earnings per share for 2018 is

Question 53 options: $22.22. $3.63. $4.50. $5.14.

Amazing's price-earnings ratio is

Question 54 options:

	180 times.
	12 times.
	18 times.
	6 times.

Amazing's payout ratio for 2018 is

Question 55 options:

	$1.00.
	5.6%.
	22.2%.
	19.4%.

Answer 1

Q53.
Earning per share
After tax net Income			9,00,000
Divide: Weighted average number of shares	2,00,000
Earning per share			4.5
Answer is $ 4.50
Q54.
Price Earnings ratio:
Price per share			81
Divide: earnings per share		4.5
Price Earnings ratio:			18
Answer is 18 times
Q55.
Dividend per share:
Dividend declared			175000
Divide: Weighted average number of shares	200000
Dividend per share:			0.875
Dividend Payout ratio:
Dividend Per share			0.875
Divide: Earnings per share		4.5
Dividend Payout ratio:		19.44%
Answer is 19.4%