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Grouper corporation has$430,000 common shares outstanding. The corporation declares a 8% stock dividend at the common...

Grouper corporation has$430,000 common shares outstanding. The corporation declares a 8% stock dividend at the common shares'fair value of $25 per share. Their carrying value is $16 per share.
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Answer #1

Your Question is not clear about the requirements.

So

Based on your data, I am giving my best possible solution

Total Value of Shares (in $) = $430,000

Fair Value of 1 share = $25

Total number of Outstanding Shares = $430,000 / $25 = 17,200 shares

Dividend rate = 8%

Total Dividend = $430,000 x 8% = $34,400

Dividend per Share = $34,400 / 17200 shares = $2 per share

As your question is not clear

I am calculating P E ratio based on assumption that Dividend per Share = Earning per Share

and Carrying Value is Market Value per Share

P/E Ratio (Price Earning Ratio) = Market Price per share / Earning Per Share

P/E ratio = $16 / $2

P/E ratio = 8 Times

I hope it will help you in study

Please give Thumbsup, if you like it. ThankYou!

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