Question

Chapter 12
Financial Planning Exercise 7
Calculating key stock performance metrics

The Morton Company recently reported net profits after taxes of $14.7 million. It has 5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $67 per share.

1. Compute the stock's earnings per share (EPS). Round the answer to two decimal places.
   $   per share
   
2. What's the stock's P/E ratio? Round the answer to two decimal places.
   $   times
   
3. Determine what the stock's dividend yield would be if it paid $3.22 per share to common stockholders. Round the answer to two decimal places.
   %

Answer 1