Question

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 share is (blank$)?

c. ​Amherst's price-to-book-value ratio is (blank)?

d. The​ firm's P/E ratio is(blank)?

e. The​ company's net profit margin is (blank%) ?

f. . The​ stock's dividend payout ratio is (blank%) ?

g. The​ stock's dividend yield is (blank%)\

h. The​ stock's PEG​ ratio, given that the​ company's earnings have been growing at an average annual rate of 9.5% is (blank) ?

Answer 1

Given,

Sales = $187 million

Profit = $16 million

Shares outstanding = 3.1 million

Total assets = $80 million

equity = $53 million

Dividend = $0.82 per share

current market price of share = $19 per share

a). EPS = NI/number of shares outstanding = 16/3.1 = $5.16

b). Book value per share = equity/number of shares outstanding = 53/3.1 = $17.10

c). Price to book value ratio = current market price/book value per share = 19/17.1 = 1.11

d). P/E ratio = current market price/EPS = 19/5.16 = 3.68

e). Net profit margin = NI/sales = 16/187 = 8.56%

f). dividend payout ration = dividend /EPS = 0.82/5.16 = 15.89%

g). Stock' dividend yield = Dividend/current market price = 0.82/19 = 4.32%

h). PEG ratio = P/E ratio / earning growth = 3.68/9.5 = 0.39