19B: h42 $0.50 $0.80 = 0.025 19A: -0.036 $20.00 $22.00 Dividends per share Dividend payout = Earnings per share S0.50 $0.80 = 0.23 $2.13 19A: 0.30 $2.67 19B: 2. The decline in dividends per share, dividend yield, and dividend payout from 19A to 19B will cause concern to stockholders. 11.8 Jones Corporation's financial statements appear below. JONES CORPORATION Balance Sheet December 31, 198 ASSETS Current Assets Cash Marketable Securities Inventory Total Current Assets Noncurrent Assets Plant Assets Total Assets $100,000 200,000 300.000 $ 600.000 500,000 $1,100,000 $ $ 300,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities $200,000 Long-Term Liabilities 100,000 Total Liabilities Stockholders' Equity Common Stock, Si par value, $100,000 shares $100,000 Premium on Common Stock 500,000 Retained Earnings 200,000 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 800,000 $1,100,000 JONES CORPORATION Income Statement For the Year Ended December 31, 19B Net Sales $10,000,000 Cost of Goods Sold 6,000,000 Gross Profit $ 4.000.000 Operating Expenses 1.000.000 Income before Taxes $ 3.000.000 Income Taxes (50% rate) 1.500,000 Net Income $ 1.500,000 $ Additional information available is a market price of $150 per share of stock and total dividends of $600,000 for 19B, and $250,000 of inventory as of December 31, 19A. Compute the following ratios: (a) Current ratio () Book value per share (b) Quick ratio (8) Earnings per share (c) Inventory turnover (h) Price-earnings ratio (d) Average age of inventory (1) Dividends per share (e) Debt-equity ratio (1) Dividend payout