The Gizmo, Inc has just announced year-end results as follows: Value of company assets.............................................$12,500,000 Value of company

Question:

The Gizmo, Inc has just announced year-end results as follows:

Value of company assets.............................................$12,500,000

Value of company liabilities..........................................$6,500,000

Net income.....................................................................$1,600,000

Common stock dividends................................................$250,000

Preferred stock dividends...............................................$400,000

Number of shares of common stock outstanding......1,000,000

Closing price of Gizmo Inc.’s stock....................................$45.00 per share

a. Calculate the book value per share.

b. Calculate the earnings per share.

c. Calculate Gizmo, Inc.’s dividend yield.

d. Calculate the market-to-book ratio.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A 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...

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