The balance sheet for Fitela Industries Ltd. at the end of the current fiscal year indicated the following:
Bonds payable, 10% (issued in 2002, due in 2022) ............................$4,000,000
$5 preferred shares, 10,000 shares issued and outstanding ................... 1,000,000
Common shares, 200,000 shares issued and outstanding ................... 2,000,000
Income before income taxes was $1,000,000, and income taxes were $150,000 for the current year. Cash dividends paid on common shares during the current year totalled $200,000. The common shares were selling for $40 per share at the end of the year.
Determine (a) the earnings per share, (b) the price-earnings ratio, and (c) the dividend yield. Round to one decimal place except earnings per share, which should be rounded to two decimal places.