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MJM Corporation has the following information extracted from it's financial statements: Net Income $ 120,000 Preferred...

MJM Corporation has the following information extracted from it's financial statements:

Net Income $ 120,000
Preferred Dividends $ 0
Cash Dividends $ 44,000
Number of Common Stock 100,000
Current Stock Price $ 14.50
Growth Potential 8%
Sales $540,000
Assets $ 720,000
Liabilities $390,000

Calculate the following:

a. Earnings Per Share (EPS)
b. Price-Earnings (PE)
c. Price-Earnings Growth (PEG)
d. Dividends Per Share
e. Book Value (Shareholder's Equity)
f. Book Value Per Share

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Answer #1
a) EPS = Net income/Number of common stock = 120000/100000 = $            1.20
b) Price eranings ratio = Price per share/EPS = 14.50/1.20 = 12.08
c) Price-Earnings growth = P/E ratio/Growth rate = 12.08/8 = 1.51
d) Dividends per share = Total cash dividends/Number of shares = 44000/100000 = $            0.44
e) Book value (Shareholders' equity)=Assets-Liabilities = 720000-390000 = $    3,30,000
f) Book value per share = Book value of equity/Number or shares = 330000/100000 = $            3.30
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