Question

In: Finance

Use the information below to calculate the following ratios for Allen Ales in 20Y6: earnings per...

Use the information below to calculate the following ratios for Allen Ales in 20Y6: earnings per share on common stock, price-earnings ratio, dividends per share, and dividend yield. The company paid $2,500 in preferred dividends for the year. Round ratios to one decimal place.

Net income

$275,300

Shares of common stock outstanding

5,750 shares

Market price per share of common stock

$4.80

Dividends on common stock

$10,900

Solutions

Expert Solution

EPS = Net earnings / number of common share

       = 275300/ 5750

        = $47.88

Price – earnings ratio = Price/ eps

                                       = 4.8/ 47.88

                                       = .1

Dividend per share = 10900/ 5750

                                   = 1.89

Dividend yield = Dividend per share/ share price

                            = 1.89/ 4.8

                            = .3949 or 39.49%

--------------------------------------------------------------------------------------------------------------------------

Hope that helps.

Feel free to comment if you need further assistance J

jeff jeffy answered 3 years ago
Next > < Previous

Related Solutions

Use the information given below for The Palm Limited to calculate the following ratios for 2019...
Use the information given below for The Palm Limited to calculate the following ratios for 2019 and give a brief explanation why these ratios will be used interpret and evaluate a company: 1.         Rate of return on total assets 2.         Rate of return on ordinary shareholders' equity 3.         Rate of return on net sales 4.         Times-interest-earned ratio 5.         Debt ratio, 31 December 2019 6.         Current ratio, 31 December 2019 7.         Earnings per ordinary share       The following information has been taken from the financial statements of The Palm...
Use the following information to answer the question(s) below. Company Ticker Price per Share Earnings per...
Use the following information to answer the question(s) below. Company Ticker Price per Share Earnings per Share Book Value per Share Abbott Labs ABT 54.35 3.69 13.79 Bristol-Myers-Squibb BMY 25.45 1.93 7.33 GlaxoSmithKline GSK 41.3 3.15 6.03 Johnson & Johnson JNJ 62.6 4.58 18.27 Merck MRK 36.25 3.81 10.86 Pfizer PFE $18.30 $1.20 8.19 Assuming that Novartis AG (NVS) has an EPS of $3.35, based upon the average price - to - book ratio for its competitors, Novartis' stock price...
Use the following information to calculate the ratios listed below: Total Assets 650,000 Total Liabilities 300,000...
Use the following information to calculate the ratios listed below: Total Assets 650,000 Total Liabilities 300,000 Current Assets 60,000 Current Liabilities 20,000 Net Income 70,000 Shares Outstanding 12,000 Accounts Receivable 55,000 Sales 439,000 Inventory 25,000 Dividends 10,000 Quick Ratio ____________________ Earnings Per Share ___________________ Return on Assets _________________ Debt/Equity Ratio _______________ Days Sales in Receivables ______________ View keyboard shortcuts12pt Paragraph
1. Financial information for Sigma Company is presented below. Calculate the following ratios for 2018: (a)...
1. Financial information for Sigma Company is presented below. Calculate the following ratios for 2018: (a) Inventory turnover. (b) Accounts receivable turnover. (c) Return on total assets. (d) Times interest earned. (e) Total asset turnover. 2018 2017 Assets: Cash $   18,000 $ 22,000 Marketable securities 25,000 0 Accounts receivable 38,000 42,000 Inventory 61,000 52,000 Prepaid insurance 6,000 9,000 Long-term investments 49,000 20,000 Plant assets, net 218,000 225,000 Total assets $415,000 $370,000 Net income after interest expense and taxes $ 62,250...
A corporation’s earnings and associated ratios, such as earnings per share, are metrics that investors and...
A corporation’s earnings and associated ratios, such as earnings per share, are metrics that investors and other stakeholders use when making decisions. The SEC recently began investigating corporations for manipulating earnings via rounding errors. In the early 2000s, it became clear that corporation’s rarely missed earnings estimates provided by financial analysts. Offer your opinion on the ethics underlying these practices, any possible broader implications of such behavior, and any real-life experiences you may have come across that are similar. See...
Use the following information to answer the questions below that are required to ultimately calculate a...
Use the following information to answer the questions below that are required to ultimately calculate a company’s WACC: - Long-term bonds: 3,500 bonds outstanding with 7.20% p.a. coupons paid semi-annually, $1000 face value, 25 years to maturity, current market yield is 5.72% p.a. - Preference shares: pay a dividend of 8% p.a. forever on a $15 face value, 45,000 outstanding, currently selling for $14.20 per share. - Ordinary shares: 175,000 shares outstanding selling for $37 per share with beta of...
Use the following information to answer the questions below that are required to ultimately calculate a...
Use the following information to answer the questions below that are required to ultimately calculate a company’s WACC: - Long-term bonds: 3,500 bonds outstanding with 7.20% p.a. coupons paid semi-annually, $1000 face value, 25 years to maturity, current market yield is 5.72% p.a. - Preference shares: pay a dividend of 8% p.a. forever on a $15 face value, 45,000 outstanding, currently selling for $14.20 per share. - Ordinary shares: 175,000 shares outstanding selling for $37 per share with beta of...
ou have been given the following information for Moore’s HoneyBee Corp., calculate the earnings per share...
ou have been given the following information for Moore’s HoneyBee Corp., calculate the earnings per share (EPS) and the interest expense for Moore’s HoneyBee Corp. a. Net sales = $32,000,000; b. Gross profits = $14,000,000; c. SG&A (selling, general & administration) expenses = $2,500,000; d. Addition to retained earnings = $4,500,000; e. Dividends paid to preferred stockholders = $500,000; f. Dividends paid to common stockholders = $1,500,000; g. Depreciation expense = $2,800,000 h. # of common shares outstanding = 1,000,000...
Use the Following Information to Compute the Ratios Below Cost of Goods Sold for 12-31-2014 =...
Use the Following Information to Compute the Ratios Below Cost of Goods Sold for 12-31-2014 = 750,000 Cost of Goods Sold for 12-31-2013 = 900,000 Ending Inventory 12-31-2014 = 75,000 Ending Inventory 12-31-2013 = 25,000 Sales Revenues 12-31-2014 = $1,000,000 Sales Revenues 12-31-2013 =$1,500,000 Inventory Turnover Ratio = COGS / Average Inventory Days-in-Inventory = 365/ Inventory Turnover Ratio Compute the Inventory Turnover Ratio for Year Ended 12-31-2014 Compute the Days In Inventory for the Year Ended 12-31-2014 NEXT QUESTION Which...
Use the following information to answer questions . Allen Company applies manufacturing overhead on the basis...
Use the following information to answer questions . Allen Company applies manufacturing overhead on the basis of direct labor hours. Overhead was estimated to be $500,000 and direct labor hours were estimated to be 20,000. During the year, Allen Company incurred actual overhead costs of $510,000, actual direct labor hours of 21,000, and actual direct labor costs of $615,000. Allen Company had the following inventory balances at the beginning and end of the year: January 1 December 31 Finished goods...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT