Question

anitou Corp. had additions to retained earnings for the year just ended of $359,000. The firm...

anitou Corp. had additions to retained earnings for the year just ended of $359,000. The firm paid out $181,000 in cash dividends, and it has ending total equity of $5.36 million. The company currently has 150,000 shares of common stock outstanding.

What are the earnings per share? (Round the final answer to 2 decimal places. Omit $ sign in your response.)

Earnings           $  per share

What are the dividends per share? (Round the final answer to 2 decimal places. Omit $ sign in your response.)

Dividends           $  per share

What is the book value per share? (Round the final answer to 2 decimal places. Omit $ sign in your response.)

Book value           $  per share

If the stock currently sells for $75 per share, what is the market-to-book ratio? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Market-to-book ratio             times

What is the price–earnings ratio? (Round the intermediate calculations to 2 decimal places. Round the final answer to 2 decimal places.)

Price–earnings ratio             times

If the company had sales of $4.59 million, what is the price–sales ratio? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Price–sales ratio             times

Homework Answers

Answer #1

Earnings per share

Earnings per share = Net Income / Number of shares

= ($359,000 + $181,000) / 150,000 Shares

= $3.60 per share

Dividends per share

Dividends per share = Dividends paid / Number of shares

= $181,000 / 150,000 Shares

= $1.21 per share

Book value per share

Book value per share = Book value of equity / Number of shares

= $5,360,000 / 150,000 Shares

= $35.73 per share

Market-to-book ratio

Market-to-book ratio = Current share price / Book value per share

= $75.00 / $35.73

= 2.10 Times

Price–earnings ratio

Price–earnings ratio = Current share price / Earnings per share

= $75.00 / $3.60

= 20.83 Times

Price–sales ratio

Price–sales ratio = Current share price / Sales per share

= $75.00 / ($4,590,000 / 150,000 Shares)

= $75.00 / $30.60

= 2.45 Times

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