P6.7 Consider the following information about Truly Good Coffee Company.

Total assets $240 million Total debt $115 million Preference shares $25 million Ordinary shareholders’ equity $100 million Net profits after tax $22.5 million Number of preference shares outstanding 1 million shares Number of ordinary shares outstanding 10 million shares Preference dividends paid $2/share Ordinary dividends paid $0.75/share Market price of the preference shares $30.75/share Market price of the ordinary shares $25.00/share Use the information above to find the following.

a. The company’s book value

b. Its book value per share

c. Its earnings per share (EPS)

d. The dividend payout ratio

e. The dividend yield on the ordinary shares

f. The dividend yield on the preference shares