During 2011, Stanton Corporation reported after-tax net income of $3,600,000. During the year, the number of shares

Question:

During 2011, Stanton reported after-tax net income of $3,600,000. During the year, the number of shares of stock outstanding remained constant at 10,000 of $100 par, 9 percent preferred stock and 400,000 shares of . The company’s total stockholders’ equity is $20,000,000 at December 31, 2011. Stanton Corporation’s was selling at $52 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.80 per share to common stockholders.
Required
Compute the following:
a. Earnings per share
b. Book value per share of
c. Price-earnings ratio
d. yield

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