The financial statements for Castile Products, Inc., are given below:
Castile Products, Inc. Balance Sheet December 31 |
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Assets | ||||||
Current assets: | ||||||
Cash | $ | 18,000 | ||||
Accounts receivable, net | 190,000 | |||||
Merchandise inventory | 310,000 | |||||
Prepaid expenses | 8,000 | |||||
Total current assets | 526,000 | |||||
Property and equipment, net | 890,000 | |||||
Total assets | $ | 1,416,000 | ||||
Liabilities and Stockholders' Equity | ||||||
Liabilities: | ||||||
Current liabilities | $ | 240,000 | ||||
Bonds payable, 10% | 330,000 | |||||
Total liabilities | 570,000 | |||||
Stockholders’ equity: | ||||||
Common stock, $5 par value | $ | 130,000 | ||||
Retained earnings | 716,000 | |||||
Total stockholders’ equity | 846,000 | |||||
Total liabilities and equity | $ | 1,416,000 |
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1.Earning Per Share= Total Earning Available to common stock holders/No of shares of common stock
No of Equity shares=130000/5=26000
EPS = Net Income/No of Equity Shares
=270900/26000
=$10.41 Per share.
2. Dividend payout ratio.
= Dividends per share /Earning per share
=4.05/10.41=38.90%
3.Dividend Yield Ratio.
=Annual Dividends Per share/Market Price per Share
=4.05/63
=6.42%
4.Price earning ratio.
=Market Value per Share / Earnings per Share
=63/10.41=6.05
5.Book value per share
=Shareholders' Equity - Preferred Shares /Total Number of Outstanding Shares
Shareholders Equity=common stock value + Retained Earnings=130000+716000=716000
Total Number of shares outstanding= Common stock-treasury stock=130000/5=26000
Therefore
716000/26000=$27.53
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