Question

Question 19

Espanya Co. has a price-earnings ratio of 10, earnings per share of P2.20, and a payout ratio of 75%. The dividend yield is

Group of answer choices

25.0%

7.5%

10.0%

22.0%

Question 20 pts

The following were reflected from the records of Mamita Company:

EBIT	P1,250,000
Interest expense	250,000
Preferred dividends	200,000
Payout ratio	40%
Shares outstanding, 2020
Preferred	20,000
Common	25,000
Income tax rate	40%
Price-earnings ratio	2

The dividend yield ratio is

Group of answer choices

0.40

0.12

0.50

0.20

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Question 221 pts

Net sales are P6,000,000, beginning total assets are P2,800,000, and the asset turnover is 3.0. What is the ending total asset balance?

Group of answer choices

P2,800,000

P2,000,000

P1,200,000

P1,600,000

Answer 1

19	P/E ratio	=price per share/earning per share
	10	=price per share/2.2
	Price per share	=10*2.2
		22
	Dividend payout ration	=dividend per share/earning per share
	0.75	=dividend per share/2.2
	Dividend per share	=0.75*2.2
		1.65
	Dividend yield	=dividend per share/price per share*100
		=1.65/22*100
		7.5
20	Net income
	EBIT	1250000
	Interest expense	-250000
	Profit before tax	1000000
	Taxes	400000
	Net income	600000
	Preferred dividends	200000
	Income attributable to common share holders	400000
	Dividend payout ratio	40%
		=400000*0.4
		160000
	Dividend per share	=160000/25000
		6.4
	Earning per share	=income attributable to common share holders/common shares
		=400000/25000
		16
	Price per share	=P/e ratio*EPS
		=2*16
		32
	Dividend yield	=Dividend per share/price per share
		=6.4/32
		0.2
21	Asset turnover ratio	=Sale/avergae total assets
	3	=6000000/(beginning assets+ending assets)/2
		=6000000/(2800000+ending assets)/2
		=12000000/(2800000+ending assets)
	ending assets	=(12000000/3)-2800000
		1200000