Question

The Amherst Company has a net profits of $9 million, sales of $159 million, and 2.5 million shares of common stock outstanding. The company has total assets of ​$75 million and total​ stockholders' equity of

​$42 million. It pays $1.27 per share in common​ dividends, and the stock trades at $24 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 profit margin.

e. The​ stock's dividend payout ratio and its dividend yield.

f. The​ stock's PEG​ ratio, given that the​ company's earnings have been growing at an average annual rate of 5.9​%.

1. Amherst's EPS is $___​(Round to the nearest​ cent.)
2. Amherst's book value per share is $___ ​(Round to the nearest​ cent.)

Amherst's price-to-book-value ratio is $ ___​(Round to two decimal​ places.)

c. The​ firm's P/E ratio is ____​(Round to two decimal​ places.)

d. The​ company's net profit margin is __% ​(Round to two decimal​ places.)

e. The​ stock's dividend payout ratio is ___ % ​(Round to two decimal​ places.)

The​ stock's dividend yield is ___% ​(Round to two decimal​ places.)

f. The​ stock's PEG​ ratio, given that the​ company's earnings have been growing at an average annual rate of 5.9​%, is___ ​(Round to two decimal​ places.)

Answer 1