8.5 info:

4% Preferred stock, $5 par, 30,000 shares authorized, 25,000 shares issued and outstanding ............................................................................................................... $125,000

Additional paid-in capital preferred stock ......................................$50,000

Common stock, $10 par, 100,000 shares authorized,

27,500 shares issued and outstanding .........................................$275,000

Additional paid-in capital common stock ..............................$65,000

Total paid-in capital ..........................................................................$515,000

Retained earnings ............................................................................$221,000

Total stockholders equity ...............................................................$736,000

Assume all of the facts provided in exercise 8.5 except that the preferred stock is cumulative and participating. a) Calculate the portion of the total $61,000 dividend attributable to preferred and common shares. b) Compute the per share dividend paid to common and preferred shareholders.

c) If Bennys Menswear Factory, Inc. had earnings per share of $2.40 for the year ended December 31, 20X4, and a market price per common share of $36 on December 31, 20X4, determine:

(1) the price/earnings ratio,

(2) the dividend payout ratio

(3) the dividend yield ratio