Assume the following financial data: Short-term assets.............................................................................. $300,000 Long-term assets.............................................................................. 500,000 Total assets................................................................................. $800,000 Short-term debt................................................................................ $200,000
Question:
Assume the following financial data:
Short-term assets.............................................................................. | $300,000 |
Long-term assets.............................................................................. | 500,000 |
Total assets................................................................................. | $800,000 |
Short-term debt................................................................................ | $200,000 |
Long-term debt................................................................................ | 168,000 |
Total liabilities............................................................................ | 368,000 |
Common stock................................................................................. | 200,000 |
Retained earnings............................................................................. | 232,000 |
Total stockholders’ equity.......................................................... | 432,000 |
Total liabilities and stockholders’ equity......................................... | $800,000 |
Total earnings (after-tax).................................................................. | $ 72,000 |
Dividends per share......................................................................... | $ 1.44 |
Stock price....................................................................................... | $ 45 |
Shares outstanding........................................................................... | 24,000 |
a. Compute the P/E ratio (stock price to earnings per share).
b. Compute the book value per share (note that book value equals stockholders’ equity).
c. Compute the ratio of stock price to book value per share.
d. Compute the dividend yield.
e. Compute the payout ratio.
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Fundamentals of Investment Management
ISBN: 978-0078034626
10th edition
Authors: Geoffrey Hirt, Stanley Block