Selected Financial Ratios for Common Stockholders [LO2]

Refer to the financial statements for Madison Company in Exercise 15–6 . In addition to the data in these statements, assume that Madison Company paid dividends of $3.15 per share during the year.

Also assume that the company’s common stock had a market price of $63 per share on June 30 and that there was no change in the number of outstanding shares of common stock during the fiscal year.

Required:

Compute the following:

1. Earnings pe r s hare.

2. Dividend pa yout r atio.

3. Dividend yi eld r atio.

4. Price-earnings r atio.