Question

Find the​ EPS, P/E​ ratio, and dividend yield of a company that has 5 million shares...

Find the​ EPS, P/E​ ratio, and dividend yield of a company that has 5 million shares of common stock outstanding​ (the shares trade in the market at $28.29​), earns 8​% after taxes on annual sales of ​$158 ​million, and has a dividend payout ratio of 27.03%. At what rate would the​ company's net earnings be growing if the stock had a PEG ratio of 1.86​?

The​ stock's EPS is $____

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer : Calculation of EPS

EPS = Earning Available to equity shareholders / Total Number os shares outstanding

= (Annual Sales * After Tax Profit) / 5 million

= (158 million * 8%) / 5 million

= 12.64 million / 5 million

= 2.528

Calculation of Price Earning Ratio (P/E Ratio) = Price / EPS

= 28.29 / 2.528

= 11.1906645569 or 11.19

Calculation of Dividend Yield = Dividend / Current Market Price

= (2.528 * 27.03%) / 28.29

= 0.6833184 / 28.29

= 0.0241540615 or 2.42%

Calculation of Growth in Earning

PEG Ratio = Price Earning Ratio (calculated above) / Earning Growth rate

Earning Growth rate = 11.19 / 1.86

= 6.01648632091% or 6.02%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Amherst Company has a net profits of ​$88 ​million, sales of ​$124 ​million, and 2.2...
The Amherst Company has a net profits of ​$88 ​million, sales of ​$124 ​million, and 2.2 million shares of common stock outstanding. The company has total assets of ​$71 million and total​ stockholders' equity of ​$37 million. It pays ​$1.33 per share in common​ dividends, and the stock trades at $27 per share. Given this​ information, determine the​ following: a. ​Amherst's EPS. b. ​Amherst's book value per share and​ price-to-book-value ratio. c. The​ firm's P/E ratio. d. The​ company's net...
The Amherst Company has a net profits of ​$16 ​million, sales of $187 ​million, and 3.1...
The Amherst Company has a net profits of ​$16 ​million, sales of $187 ​million, and 3.1 million shares of common stock outstanding. The company has total assets of ​$80 million and total​stockholders' equity of ​$53 million. It pays ​$.82 per share in common​ dividends, and the stock trades at ​$19 per share. Given this​ information, determine the​ following: (round all to 2 decimal places) *huge thumbs up for correct answer* a. ​Amherst's EPS is (blank$) ? b.Amherst's book value per...
The Castle Company recently reported net profits after taxes of $14.3 million. It has 5 million...
The Castle Company recently reported net profits after taxes of $14.3 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 $30 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 $0.84...
Assume you work for the financial research unit of an investment bank, and you are responsible...
Assume you work for the financial research unit of an investment bank, and you are responsible for the financial analysis of The Monti Company. The firm has net profits of $12 million, sales of $165 million, and 3.0 million shares of common stock outstanding. The company has total assets of $80 million and total stockholders' equity of $50 million. It pays $1 per share in common dividends, and the stock trades at $25 per share. Given this information, determine the...
Assume you work for the financial research unit of an investment bank, and you are responsible...
Assume you work for the financial research unit of an investment bank, and you are responsible for the financial analysis of The Monti Company. The firm has net profits of $12 million, sales of $165 million, and 3.0 million shares of common stock outstanding. The company has total assets of $80 million and total stockholders' equity of $50 million. It pays $1 per share in common dividends, and the stock trades at $25 per share. Given this information, determine the...
EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Obregon,...
EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Obregon, Inc. at the end of 2017 appears as follows: 8%, $100 par, cumulative preferred stock, 200,000 shares authorized, 50,000 shares issued and outstanding $5,000,000 Additional paid-in capital on preferred 2,500,000 Common stock, $5 par, 500,000 shares authorized, 400,000 shares issued and outstanding 2,000,000 Additional paid-in capital on common 18,000,000 Retained earnings 37,500,000 Total stockholders' equity $65,000,000 Net income for the year was $1,240,000. Dividends...
The Castle Company recently reported net profits after taxes of $10.5 million. It has 2 million...
The Castle Company recently reported net profits after taxes of $10.5 million. It has 2 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $57 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...
Financial Learning Systems has 2.34 million shares of common stock outstanding and 126,779 shares of preferred...
Financial Learning Systems has 2.34 million shares of common stock outstanding and 126,779 shares of preferred stock. ? (The preferred pays annual cash dividends of ?$5.24 a? share, and the common pays annual cash dividends of 21 cents a? share.) Last? year, the company generated net profit? (after taxes) of $6,869,423.??The? company's balance sheet shows total assets of ?$71 ?million, total liabilities of??$26 ?million, and $5 million in preferred stock. The? firm's common stock is currently trading in the market...
Financial Learning Systems has 2.9 million shares of common stock outstanding and 61,410 shares of preferred...
Financial Learning Systems has 2.9 million shares of common stock outstanding and 61,410 shares of preferred stock.​ (The preferred pays annual cash dividends of ​$4.46 a​ share, and the common pays annual cash dividends of 19 cents a​ share.) Last​ year, the company generated net profit​ (after taxes) of $5,809,735. The​ company's balance sheet shows total assets of ​$72 ​million, total liabilities of $26 ​million, and $5 million in preferred stock. The​ firm's common stock is currently trading in the...
Step 1: Assume you work for the financial research unit of an investment bank, and you...
Step 1: Assume you work for the financial research unit of an investment bank, and you are responsible for the financial analysis of The Monti Company. The firm has net profits of $12 million, sales of $165 million, and 3.0 million shares of common stock outstanding. The company has total assets of $80 million and total stockholders’ equity of $50 million. It pays $1 per share in common dividends, and the stock trades at $25 per share. Given this information,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT