Question

Rossdale, Inc., had additions to retained earnings for the year just ended of $626,000. The firm paid out $125,000 in cash dividends, and it has ending total equity of $7.21 million.

If the company currently has 580,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Earnings per share	$
Dividends per share	$
Book value per share	$

If the stock currently sells for $29.10 per share, what is the market-to-book ratio? The price−earnings ratio? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Market-to-book ratio		times
Price−earnings ratio		times

If total sales were $10.51 million, what is the price−sales ratio?

Answer 1

Net Income for the year:
Additions to Retained earnings			626000
Add: Dividend paid			125000
Net Income for the year:			751000
Earnings per share:
Net income for the year			751000
Divide: Shares outstanding			580000
EPS			1.29
Dividend per share:
Dividend paid			125000
Divide: Shares outstanding			580000
Dividend per share:			0.22
Book value per share:
Total Endning equity			7210000
Divide: Shares outstanding			580000
Book value per share:			12.43
Market to Book value:
Market price per share			29.1
Divide: Book value per share			12.43
Market to book value ratio			2.34
Price Earnings ratio:
Market price			29.1
Divide: EPS			1.29
Price Earnings ratio:			22.56
Price sales ratio
Market value (580000*29.10)			16878000
Divide: Sales revenue			10510000
Price sales ratio			1.61