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Do the Math 14-1 Numerical Measures A stock sells at $25 per share. What is the...

Do the Math 14-1
Numerical Measures
A stock sells at $25 per share.
What is the EPS for the company if it has a P/E ratio of 25? Round your answer to the nearest cent.
$ _____
If the company’s dividend yield is 3 percent, what is its dividend per share? Round your answer to the nearest cent.
$ ______
What is the book value of the company if the price-to-book ratio is 2.5 and it has 200,000 shares of stock outstanding? Round your answer to the nearest dollar.
$ ______

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Homework Answers

Answer #1

Price Earning Ratio (PE Ratio) = 25 and Market Price Per Share (MPS) = 25

PE Ratio = MPS / EPS

25 = 25 / EPS , So EPS =$1

Dividend Yield = 3%

Dividend Yield = (DPS / MPS) * 100

3 = (DPS / 25) * 100

DPS = $0.75

Price to book ratio = 2.5

Price to book ratio = Market Price Per Share / Book value per share

2.5 = 25 / BVPS

BVPS = 10

No. of shares outstanding = 200,000

Book Value = 200,000 * 10 = $2,000,000

(if any query, please comment, I will reply in the comments)

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